RBI's norms on hedging against exchange rate risks | In Focus podcast
In Focus by The Hindu
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Unhinged Forex Exposure for Corporates - Is That the RBI's Mandate?
RBI norms only cover banks, they don't incur the certain kind of behavior for corporates. Banks will be assigning additional credit risk to the corporates for unhinged Forex exposure. In that sense, it's also indirectly putting pressure on the corporates to hedge their forex exposure. Around 44% of our external commercial borrowing is unhinged and this number would go down even more if we take into account natural hedging.
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