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RBI Tweaks Exposure Rules

INR

Rupee forwards dropping, tweaks to exposure rules are cited.

  • The RBI yesterday extended further exemptions from the Large Exposures Framework (LEF). Exemptions in question will apply to exposures to foreign sovereigns or their central banks that are:
    • subject to a 0% risk weight as mentioned in Master Circular on Basel III Capital Regulations
    • denominated in the domestic currency of that sovereign and met out of resources of the same currency

Full press release here

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