Banks seek clarity on RBI’s new forex curbs, flag operational challenges
The measures, announced over the weekend, have raised questions about maintaining the Foreign Exchange Risk Reserve (FERR), recovering the associated costs from customers and calculating the notional value of transactions involving multiple options strategies. Banks have approached the RBI through Foreign Exchange Dealers’ Association of India (FEDAI) and are awaiting further guidance, potentially through frequently asked questions (FAQs), to resolve these issues, the participants said.
