Page 42 - Banking Finance MAY 2017

RBI CIRCULAR

RBI CIRCULAR

Risk Management and Inter-bank Dealings: March 17, 2017 a copy of which is given in the Annex
II to this circular. These regulations have been issued
Operational flexibility for Indian
under clause (h) of sub-section (2) of Section 47 of
subsidiaries of Non-resident Companies FEMA, 1999 (42 of 1999).
RBI/2016-17/254 4. AD Cat-I banks may bring the contents of this circular
A.P. (DIR Series) Circular No. 41 to the notice of their constituents and customers.
5. The directions contained in this circular have been
1. Attention of Authorised Dealers Category - I (AD Category issued under Sections 10(4) and 11(1) of the Foreign
- I) banks is invited to the Foreign Exchange Management Exchange Management Act, 1999 (42 of 1999) and are
(Foreign Exchange Derivative Contracts) Regulations, 2000 without prejudice to permissions/ approvals, if any,
dated May 3, 2000 (Notification No. FEMA. 25/RB-2000 required under any other law.
dated May 3, 2000) issued under clause (h) of sub-section
(2) of Section 47 of FEMA, 1999 (Act 42 of 1999), as Yours faithfully
amended from time to time and Master Direction on Risk (T Rabi Sankar)
Management and Inter-Bank Dealings dated July 5, 2016, Chief General Manager
as amended from time to time.
Formation of seven new districts in the
2. With a view to providing operational flexibility to
multinational entities and their Indian subsidiaries State of Manipur - Assignment of Lead
exposed to currency risk arising out of current account Bank Responsibility
transactions emanating in India, the extant hedging
guidelines have been amended as per the terms and RBI/2016-17/258
conditions in the Annex I to this circular. An FIDD.CO.LBS.BC.No.24/02.08.001/2016-17
announcement to this effect was made in the Statement
on Developmental and Regulatory Policies of Reserve 1. Please refer to the circular FIDD.CO.LBS.BC.No.23/
Bank of India dated October 4th, 2016 (para. 9). 02.08.001/2016-17 dated March 9, 2017 on assigning
lead bank responsibility to the seven newly created
3. Necessary amendments (Notification No.FEMA No.384/
districts in the State of Manipur.
2017-RB dated March 17, 2017) to Foreign Exchange
Management (Foreign Exchange Derivatives Contracts) 2. The Government of Manipur vide Gazette Notification
Regulations, 2000 (Notification No. FEMA.25/RB-2000 dated December 14, 2016 has issued a corrigendum
dated May 3, 2000) (Regulations) have been notified rectifying the Sub Divisions of districts Senapati and
in the Official Gazette vide G.S.R.No.260 (E) dated Kangpokpi as detailed below:-

42 | 2017 | MAY | BANKING FINANCE

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