India cbank to introduce extra provisioning for unhedged foreign exposure

Last Updated: Tue, Jul 02, 2013 13:20 hrs

MUMBAI, July 2 (Reuters) - India's central bank on Tuesday said it would introduce incremental provisioning and capital requirements for bank exposures to corporates with unhedged foreign currency exposures.

"The extent of unhedged foreign currency exposures of the corporate continues to be significant and increases the probability of default in an environment of high currency volatility," the central bank said in a draft guideline on capital and provisioning requirements for exposures to corporates.

Banks can offer feedback on the various proposals in the guideline latest by Aug. 2, 2013, the Reserve Bank of India said. (Reporting by Shamik Paul; Editing by Anand Basu)

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