Finance
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Believe ItRBI shakes things up for FBB exposures, believe it!
Yo, listen up! RBI just threw down the law: FBB's loans to its HO and branches are in the LEF zone! But wait, subsidiaries chill in the ITE realm. Stakeholders had a wild mix of ideas, but RBI's sticking to gross calculations, no netting allowed! Just like I won’t back down from my dream of being Hokage! Believe it!
few days ago | BS Reporter
Quick rundown
1.RBI clarifies exposure rules for foreign bank branches.
2.Exposures to head office fall under the Large Exposures Framework.
3.Stakeholder feedback on RBI's draft was diverse.
4.RBI retains gross basis calculation for exposures.
5.No netting allowed due to lack of legal ring-fencing.
