Regulatory Alerts2021-05-25 | Banking Act Direction No. 8 of 2021Amendments to Banking Act Directions No. 11 of 2018 on Foreign Currency Borrowings by Licensed Banks
The regulator issued amendments to Banking Act Directions No. 11 of 2018 requiring licensed banks to submit a standardized monthly statement for foreign currency borrowings. This reporting framework mandates detailed disclosures of capital, interest, and counter-party amounts in both foreign currency and rupee equivalents, alongside first and second leg exchange rates. Banks must also document repayment risk mitigation via SWAP arrangements, counter-party ratings, outstanding balances, borrowing purposes, Tier II capital inclusion, and applicable interest rates.
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