Prudential Norms for Off-balance Sheet Exposures of Banks - Deferment of Option Premium - ଆରବିଆଇ - Reserve Bank of India
Prudential Norms for Off-balance Sheet Exposures of Banks - Deferment of Option Premium
RBI/2012-13/535 June 18, 2013 The Chairman and Managing Directors/ Chief Executive Officers of Madam / Sir, Prudential Norms for Off-balance Sheet Exposures of Banks – Deferment of Option Premium Banks are permitted to defer, at their discretion, the premium on plain vanilla options sold by them to users subject to certain conditions with effect from January 25, 20121. It has now been decided to extend this facility to cost reduction forex option structures in which the liability of the users never exceeds the net premium payable to the bank under any scenario. This facility would be subject to the following conditions:
2. Such option structures would continue to be governed by instructions (as amended from time to time) on
Yours faithfully, (Chandan Sinha) |