Reserve Bank of India (RBI) Governor Shaktikanta Das, arrives to deal with a press convention on RBI’s financial coverage at RBI headquarters in Mumbai, India, Wednesday, December 7, 2022.
| Photo Credit: AP
Resident entities from India will now be permitted to hedge gold price risks at the International Financial Services Centre, RBI Governor Shaktikanta Das mentioned on Wednesday, December 7, 2022.
At current, resident entities in India usually are not permitted to hedge their publicity to gold price threat in abroad markets.
“With a view to providing greater flexibility to these entities to hedge the price risk of their gold exposures efficiently, it has been decided to permit resident entities to hedge their gold price risk on recognised exchanges in the IFSC,” Das mentioned after saying the bi-monthly coverage evaluation.
The detailed directions on the identical shall be issued individually by the central financial institution, he added.
Meanwhile, Das additionally introduced to prolong the dispensation of enhanced HTM (held to maturity) restrict of 23 per cent up to March 31, 2024, and permit banks to embody securities acquired between September 1, 2020, and March 31, 2024, within the enhanced HTM restrict.
The Reserve Bank had elevated the boundaries beneath the HTM class from 19.5 per cent to 23 per cent of internet demand and time liabilities (NDTL) in respect of statutory liquidity ratio (SLR) eligible securities acquired on or after September 1, 2020, up to March 31, 2023.
This dispensation of enhancement in HTM restrict was made accessible up to March 31, 2023, he mentioned, including that HTM limits would now be restored from 23 per cent to 19.5 per cent in a phased method ranging from the quarter ending June 30, 2024.