RBI Forex Rules Raise FCNR(B) Hedging Costs for Banks

RBI's new forex rules impose a 20% reserve on derivatives. Banks face higher hedging costs for FCNR(B) deposits. Dollar-rupee forward premiums have increased.

https://www.business-standard.com/industry/banking/rbi-s-new-forex-derivative-norms-to-raise-fcnr-b-hedging-costs-for-banks-126102901620_1.html

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