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.
Name of Bank : . in FC value in Rupee Equivalent Capital Interest Counter-party Amount, in FC value Exchange rate, first leg (Sold at) Exchange rate, second leg (Buy at) Total 0 Othe Char ges Repayment Risk Mitigation, SWAP arrangements Rating of Counterpa rty (Lender)/I nstrument Amount Borrowed, in FC value Outstanding Amount Purpose of borrowing Whether included for Tier II capital (Yes/No) Date of Borrowing Date of Maturity Monthly Statement of Foreign Borrowings Period: Amount in '000 Name of Counterparty (Lender) Country Busine ss Unit (DBU/ OBU) Nature of Transactions (Product/Instrument) (/1) Currency Type (/2) Rate of Interest, %