Capital and provisioning requirements for exposures to entities with Unhedged Foreign Currency Exposure(UFCE)

RBI vide notification Nos. RBI/2020-21/100 dated 17th February, 2021 has issued guidelines that information on UFCE may be obtained by banks from entities on a quarterly basis and on self-certification basis.
A representation has been received from banks expressing their inability in obtaining UFCE certificates from listed entities for the latest quarter due to restrictions on disclosure of such information prior to finalisation of accounts.
In view of this, it has been decided that in such cases, banks may use data pertaining to the immediate preceding quarter for computing capital and provisioning requirements in case of Unhedged Foreign Currency Exposures.

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12031&Mode=0

Add Comment

Required fields are marked *. Your email address will not be published.