RBI/2008-09/19
Master Circular No./06/2008-09

July 1,  2008

To,
         All Authorised Dealers - Category I banks

Madam / Sir,

Master Circular on Risk Management and Inter-Bank Dealings

Rupee Accounts of Non-Resident Banks, Inter-Bank Dealings, Foreign Exchange Derivative Contracts, etc. are governed by the provisions in Notification No. FEMA 1/2000-RB, Regulation 4(2) of Notification No. FEMA 3/RB-2000 and Notification No. FEMA 25/RB-2000 dated May 3, 2000 and subsequent amendments thereto.

2. This Master Circular consolidates the existing instructions on the subject of "Risk Management and Inter-Bank Dealings" at one place. The list of underlying circulars/notifications is set out in Appendix.

3. This Master Circular is issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2009 and would be replaced by an updated Master Circular on the subject.

Yours faithfully,

(Salim Gangadharan)
Chief General Manager-in-Charge