Master Direction – Risk Management and Inter-Bank Dealings (Updated as on May 03, 2024)

RBI Master Direction Link

Master Direction – Risk Management and Inter-Bank Dealings

The Reserve Bank of India has issued a master direction for risk management and inter-bank dealings, which outlines facilities and guidelines for various transactions.

Facilities for Persons Resident in India and outside India

This section defines facilities for persons resident in India (other than authorised dealers) and persons resident outside India, including:

  • Definitions
  • Directions for OTC foreign exchange transactions, including user classification framework, products, purpose, and other directions
  • Directions for exchange traded currency derivatives, including products, purpose, and other directions

Facilities for Authorised Dealers

This section outlines facilities for authorised dealers, including:

  • Management of assets-liabilities, including users, purpose, products, operational guidelines, and terms and conditions
  • Hedging of gold prices, including users, purpose, products, operational guidelines, and terms and conditions
  • Hedging of capital, including users, product, operational guidelines, and terms and conditions

The master direction provides a comprehensive framework for risk management and inter-bank dealings, covering various aspects of foreign exchange transactions and hedging activities.

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Download: Master Direction – Risk Management and Inter-Bank Dealings (Updated as on May 03, 2024)

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