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Dec 11, 2012
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RBI may announce ceiling on banks’ exposure to commodity futures
The Reserve Bank of India (RBI) is likely to announce a ceiling on banks' exposure to commodity futures, after the government allowed them to trade in this segment by amending the banking regulation law.
The RBI could also come out with relevant operational guidelines once Parliament approves the Banking Laws Amendment Bill introduced in the Lok Sabha on Monday, a senior finance ministry official said.
Referring to the enabling clause in the Bill for letting banks to trade in commodity futures, the official said it is meant to help banks and farmers, adding the provision was also in line with global practices. The department of financial services has been in talks with the RBI on the guidelines needed in this regard, including the cap on exposure, sources said.
Source -
http://www.financialexpress.com
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