RBI may make hedging mandatory for Indian firms to cut currency risks
Mumbai
ALARMED at the currency risks that Indian companies are running on their books, the central bank may consider making hedging mandatory if banks cannot persuade their corporate customers to seek protection, several market sources told Reuters.
For now, the Reserve Bank of India (RBI) is calling on banks with detailed questions about how they are compelling corporate clients to hedge their exposure. If indirect pressure fails, the RBI is considering forcing companies to submit detailed financial information through their lenders, four bankers cited an RBI official as saying at a meeting earlier this month.
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