RBI issues prudential guidelines w.r.t Bilateral Netting of Qualified Financial Contracts

The RBI, makes amendment w.r.t legal framework for enforceability of bilateral netting of qualified financial contracts (QFC). Earlier through vide Notification no. FMRD.DIRD.2/14.03.043/2020-21 dated March 9, 2021, notified (a) “derivatives”; and (b) “repo” and “reverse repo” transactions as a QFC. Accordingly, selected instructions contained in the Directions have been modified appropriately. This circular is applicable to All Standalone Primary Dealers, Primary (Urban) Co-operative Banks, etcThe RBI, makes amendment w.r.t legal framework for enforceability of bilateral netting of qualified financial contracts (QFC). Earlier through vide Notification no. FMRD.DIRD.2/14.03.043/2020-21 dated March 9, 2021, notified (a) “derivatives”; and (b) “repo” and “reverse repo” transactions as a QFC. Accordingly, selected instructions contained in the Directions have been modified appropriately. This circular is applicable to All Standalone Primary Dealers, Primary (Urban) Co-operative Banks, etctaxmann.com Latest Statutory HappeningsRead More

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