Page 61 - Banking Finance May 2024
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RBI CIRCULAR
ried out from time to time. The last such amendment 3. These instructions shall be applicable with immediate
was notified vide our circular DOR. AML.REC.83/ effect. The Master Direction Foreign Exchange Man-
14.06.001/2023-24 dated March 11, 2024. agement (Hedging of Commodity Price Risk and Freight
Risk in Overseas Markets) Directions, 2022 has been
4. In this regard, Ministry of External Affairs (MEA), GoI
has informed that the UNSC Committee established updated accordingly.
pursuant to resolution 1718 (2006) has enacted the 4. The directions contained in this circular have been is-
amendments, specified with strikethrough and/or un- sued under Sections 10(4) and 11(1) of the Foreign Ex-
derline in an entry on its Sanctions List of individuals change Management Act, 1999 (42 of 1999) and are
and entities (enclosed with this circular). Hence, the without prejudice to permissions/ approvals, if any,
designated list as referred in Para 2.1 and other rel- required under any other law.
evant paras of the aforementioned Order dated Sep-
tember 01, 2023 is amended in accordance with the Master Circular - Income Recognition,
changes in the relevant entry.
Asset Classification, Provisioning and
5. The latest version of the UNSC Sanctions lists on DPRK
is accessible on the UN Security Councils website at the Other Related Matters - UCBs
following URLs: April 02, 2024
https://www.un.org/securitycouncil/sanctions/1718
1. Please refer to our Master Circular DOR.STR.REC.14/
6. The REs are advised to take note of the aforementioned 21.04.048/2023-24 dated May 8, 2023 consolidating
communications and ensure meticulous compliance. instructions / guidelines issued to banks till March 31,
2023 on matters relating to prudential norms on income
Hedging of Gold Price Risk in Overseas recognition, asset classification and provisioning pertain-
Markets ing to advances.
2. Attached is the revised Master Circular, updated to re-
April 15, 2024
flect all instructions issued upto March 31, 2024 on the
above matter, as listed in Annex 9. It may be noted
1. Please refer to Paragraph 2 of the Statement on De- that this Master Circular only consolidates all instruc-
velopmental and Regulatory Policies announced as a tions on the above matter issued up to March 31, 2024
part of the Bi-monthly Monetary Policy Statement for and does not contain any new instructions/guidelines.
2023-24 dated February 08, 2024, regarding hedging
of price risk of gold in overseas markets. Attention is
also invited to the Master Direction Foreign Exchange Master Circular - Prudential norms on
Management (Hedging of Commodity Price Risk and Income Recognition, Asset Classification
Freight Risk in Overseas Markets) Directions, 2022.
and Provisioning pertaining to Advances
2. Resident entities were permitted to hedge their expo-
sure to price risk of gold on exchanges in the Interna- April 02, 2024
tional Financial Services Centre (IFSC) recognised by the 1. Please refer to the Master Circular DOR.STR.REC.3/
International Financial Services Centres Authority 21.04.048/2023-24 dated April 1, 2023 consolidating
(IFSCA) vide A. P. (DIR Series) Circular No. 19 dated instructions / guidelines issued to banks till March 31,
December 12, 2022. To provide further flexibility to 2023 on matters relating to prudential norms on income
resident entities to hedge their exposures to price risk recognition, asset classification and provisioning pertain-
of gold, it has now been decided to permit resident ing to advances.
entities to hedge their exposures to price risk of gold
using OTC derivatives in the IFSC in addition to the 2. Attached is the revised Master Circular, updated to re-
derivatives on the exchanges in the IFSC, subject to the flect all instructions issued upto March 31, 2024 on the
stipulations set out in the Master Direction Foreign above matter, as listed in Annex 5. It may be noted
Exchange Management (Hedging of Commodity Price that this Master Circular only consolidates all instruc-
Risk and Freight Risk in Overseas Markets) Directions, tions on the above matter issued up to March 31, 2024
2022, as amended from time to time. and does not contain any new instructions/guidelines.
54 | 2024 | MAY | BANKING FINANCE
