MANU/RMIC/0110/2016

Ministry : Reserve Bank of India

Department/Board : RBI

Circular No. : FMRD.No.01/2016-2017
                   RBI/FMRD/2016-2017/31

Date : 05.07.2016

Notification/ Circulars Referred : Notification No. FEMA 25/RB-2000 dated May 3, 2000 MANU/RFEM/0017/2000;Notification No. FEMA 1/2000-RB MANU/RFEM/0001/2000;Notification No. FEMA 3/RB-2000 MANU/RFEM/0018/2000

Citing Reference:
Notification No. FEMA 25/RB-2000 dated May 3, 2000 MANU/RFEM/0017/2000  Referred

Notification No. FEMA 1/2000-RB MANU/RFEM/0001/2000  Referred

Notification No. FEMA 3/RB-2000 MANU/RFEM/0018/2000  Referred

To,

All Authorised Dealers - Category I Banks

Madam / Sir,

Master Direction - on Risk Management and Inter-Bank Dealings

In exercise of the powers conferred by clause (h) of sub-section (2) of section 47 of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999), the Reserve Bank has framed regulations to promote orderly development and maintenance of foreign exchange market in India through Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 Notification No. FEMA 25/RB-2000 dated May 3, 2000 and subsequent amendments thereto. Attention is also drawn to provisions in Notification No. FEMA 1/2000-RB, Regulation 4(2) of Notification No. FEMA 3/RB-2000 and subsequent amendments thereto. All of the above govern the Foreign Exchange Derivative Contracts, Overseas Commodity & Freight Hedging, Rupee Accounts of Non-Resident Banks and Inter-Bank Foreign Exchange Dealings etc. These Regulations are amended from time to time to incorporate the changes in the regulatory framework and published through amendment notifications.

2. Within the contours of the Regulations, the Reserve Bank issues directions to Authorised Persons under Section 11 of the Foreign Exchange Management Act (FEMA), 19........