Risk Management and Inter-bank Dealings- Permitting AD Cat-I banks to voluntarily undertake user and Inter-Bank transactions beyond onshore market hours
As announced in the Statement of Developmental and Regulatory Policies dated October 04, 2019, it has been decided to accept the recommendation of the Task Force on Offshore Rupee Market to permit AD Cat-I banks to offer foreign exchange prices to users at all times, out of their Indian books, either by a domestic sales team or through their overseas branches.
Accordingly, the following section is being added in Part C (Inter-Bank Foreign Exchange Dealings) of the Master Direction- Risk Management and Inter-Bank Dealings:
“6. Customer and inter-bank transactions beyond onshore market hours
Authorised dealers may undertake customers (person resident in India and persons resident outside India) and inter-bank transactions beyond onshore market hours. Transactions with person resident outside India, through their foreign branches and subsidiaries, may also be undertaken beyond onshore market hours.”
Reserve Bank of India
[Circular dt. 06-01-2020]