RBI cuts risk in banks' capital market exposure

The RBI revised rules to lower banks' risk in capital markets for Irrevocable Payment Commitments (IPCs), allowing only custodian banks with agreements granting them an inalienable right over securities to issue IPCs.The clause is waived if transactions are pre-funded, with clear INR funds in the customer's account or credited bank nostro account for FX deals before issuing IPCs.

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