The RBI clarifies certain provisions of the unhedged foreign currency exposure guidelines
The Reserve Bank of India (RBI) had issued guidelines on ‘capital and provisioning requirements for exposures to entities with unhedged foreign currency exposure’ (‘the Guidelines’) on 15 January 2014. The guidelines effective from 1 April 2014 prescribed the methodology to be followed for calculating incremental provisioning and capital requirements for bank exposures to entities with unhedged foreign currency exposures (UFCE).
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