The Reserve Bank of India (RBI) on October 11, 2022 has issued Reserve Bank of India (Unhedged Foreign Currency Exposure) Directions, 2022. This has come into force on January 1, 2023.
The following has been stated namely: -
• The provisions of these Directions shall be applicable to all commercial banks excluding Payments Banks and Regional Rural Banks. These Directions shall be applicable to overseas branches/subsidiaries of banks incorporated in India.
• Banks shall ascertain the Foreign Currency Exposure (FCE) of all entities at least on an annual basis. Banks shall compute the FCE following the relevant accounting standard applicable to the entity.
[Notification No. RBI/2022-23/131]
