The RBI (Reserve Bank of India) on recently allowed NRIs (Non Resident Indians) to hedge currency risk for ECBs (External Commercial Borrowings) denominated in rupees with Indian banks.
The new guideline aims at mitigating currency risk attached with the rupee borrowings. RBI had allowed overseas borrowings in the local currency in September, 2011.
RBI said,''Micro finance NGOs have been permitted to avail of ECBs designated in rupee, under the automatic route, from overseas organizations and individuals as per the guidelines. It has been decided to allow nonresidents to hedge their currency risk in respect of ECBs denominated in rupees with banks in India"
Src: PTI
The new guideline aims at mitigating currency risk attached with the rupee borrowings. RBI had allowed overseas borrowings in the local currency in September, 2011.
RBI said,''Micro finance NGOs have been permitted to avail of ECBs designated in rupee, under the automatic route, from overseas organizations and individuals as per the guidelines. It has been decided to allow nonresidents to hedge their currency risk in respect of ECBs denominated in rupees with banks in India"
Src: PTI
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