RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A.P. (DIR Series) Circular No.123
May 10, 2012
To,
All Authorised Dealer Category - I Banks
Madam / Sir,
Risk Management and Inter Bank Dealings
Attention of Authorized Dealers Category – I (AD Category – I) banks is
invited to A.P. (DIR Series) Circular No.58 dated December 15, 2011 on the
captioned subject.
- In terms of the above circular, Intra-day open position /
daylight limit of Authorised Dealers should not exceed the erstwhile Net
Overnight Open Position Limit available to them. It was further clarified
through FEDAI Circular SPL-58/Risk Mgmt./2011 dated 21st December 2011 that
restrictions placed on Intraday positions limits is only applicable for
positions involving Rupee as one of the currencies.
- On a review it has been
decided to fix the intra-day open position / daylight limit of the Authorised
Dealers at five times the Net Overnight Open Position Limit available to them or
the existing Intra-day open position limit as approved by the Reserve Bank,
whichever is higher, for positions involving Rupee as one of the currencies.
- The directions contained in this circular have been issued under sections 10(4)
and 11(1) of the Foreign Exchange Management Act 1999 (42 of 1999) and are
without prejudice to permissions/approvals, if any, required under any other
law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager
RBI/2011-12/546