RBI liberalizes hedging limit for investors up to $250,000

RBI has liberalized hedging limit for domestic investors to $250,000 from $100,000 on the basis of a simple declaration without any prerequisite of further documentation.
RBI has now allowed all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures to book foreign exchange forward contracts up to $250,000 on the grounds of a mere declaration without any prerequisite of further documentation.
The RBI stated that the services being currently provided for SMEs (Small and Medium Enterprises) which are having an exposure to foreign exchange risk, shall remain unchanged.

Month: Current Affairs - April, 2014