RBI eases additional provisioning rules on unhedged FX exposure

The Reserve Bank of India allowed banks to distribute the additional provisioning on unhedged foreign currency exposure equally in the current fiscal year instead of providing the entire amount in the June quarter, it said in a release on Tuesday.

However, it declined such a relaxation on overall capital requirements.

The RBI also clarified that incremental provisioning for unhedged forex exposures will be treated as general provisioning under Tier II capital.

Incremental provisioning on such exposures would require banks to provide 10 basis points over and above standard asset provisioning, the RBI said.

EDITORIAL OF THE DAY

  • It makes sense to highlight PM’s achievements with little noise to attract greater attention

    Are prime minister Narendra Modi and the BJP going over the top?

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Can Hefa actually become a reality?

The ministry of human resource development (MHRD) is actively wo­rking ...

Kuruvilla Pandikattu

The India of our dreams

The speech “I have a dr­eam,” that Martin Luther King ...

Shona Adhikari

Head to Tate Modern for a refresher course on Bhupen Khakhar

India’s celebrated artist Bhupen Khakhar’s exhibition, titled You Can’t Please ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture