Master Circular on Risk Management and Inter-Bank Dealings. - FEMA - 12/2011-12

RBI/2011-12/12 Master Circular No. 12/2011-12 July 1, 2011 To, All Authorised Dealers - Category I Banks Madam / Sir, Master Circular on Risk Management and Inter-Bank Dealings Foreign Exchange Derivative Contracts, Overseas Commodity Freight Hedging, Rupee Accounts of Non-Resident Banks, Inter-Bank Foreign Exchange Dealings, 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 This circular will stand withdrawn on July 1, 2012 and would be replaced by an updated Master Circular on the subject. Yours faithfully, (Meena Hemchandra) Chief General Manager- in- Charge