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RBI Master Circular on Risk Management & Inter-Bank Dealings (2010)

No longer current — replaced by Master Circular on Rupee / Foreign Currency Export Credit and Customer Service to Exporters

Source: Reserve Bank of India · RBI/2010-11/14 · issued 01 Jul 2010 · ~2 min read

Quick answerRBI consolidated all rules on forex derivatives, commodity hedging, NRI accounts, and inter-bank FX dealings into one master circular. It applies to AD Category-I banks and sets a one-year sunset clause, expiring July 1, 2011.

What changed

RBI issued Master Circular No. 14/2010-11 on July 1, 2010, consolidating all prior instructions on risk management and inter-bank dealings into a single document. The circular includes a sunset clause, meaning it will be withdrawn on July 1, 2011 and replaced with an updated version.

What it means for you

Banks must now refer to this single master circular for all rules on forex derivative contracts, commodity and freight hedging, rupee accounts of non-resident banks, and inter-bank FX dealings. The one-year sunset clause means banks should prepare for an updated circular by July 2011, ensuring compliance with the latest instructions.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review the master circular to ensure all internal policies align with consolidated instructions on forex derivatives and hedging.
Update training materials for staff handling AD Category-I operations to reflect the consolidated guidelines.
Monitor the sunset clause timeline and prepare for the replacement circular by July 1, 2011.
Verify that all forward contracts and derivative bookings comply with the underlying exposure verification requirements.

Who it affects

All Authorised Dealers - Category I Banks, Importers and exporters using forward contracts, Non-resident banks with rupee accounts, Entities hedging commodity or freight risks

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 05:35 IST
Superseded by — Master Circular on Rupee / Foreign Currency Export Credit and Customer Service to Exporters
Status change: superseded 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the sunset clause in this master circular?

The circular includes a sunset clause of one year, meaning it will stand withdrawn on July 1, 2011 and be replaced by an updated master circular on the same subject.

Which regulations govern the topics covered in this circular?

The circular consolidates instructions under FEMA 1/2000-RB, FEMA 3/RB-2000, and FEMA 25/RB-2000, along with subsequent amendments.

Can forward contracts be booked without documentary evidence?

Yes, AD Category-I banks may allow importers/exporters and special dispensation entities to book forward contracts based on a declaration of exposure, subject to conditions in the circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Superseded by Master Circular on Rupee / Foreign Currency Export Credit and Customer Service t

📜 Read the original circular — full text as issued by RBI

RBI/2010-11/14 

 Master Circular No. 14/2010-11 

 July 1,  2010 

 To,

 All Authorised Dealers - Category I Banks

 Madam / Sir,

 Master Circular on Risk Management and Inter-Bank Dealings 

 Foreign Exchange Derivative Contracts, Overseas Commodity & Freight  Hedging, Rupee Accounts of Non-Resident Banks, Inter-Bank Foreign Exchange Dealings, etc. are governed by the provisions in Notification No. FEMA 1/2000-RB , Regulation 4(2) of Notification No. FEMA 3/RB-2000 and Notification No. FEMA 25/RB-2000 dated May 3, 2000 and subsequent amendments thereto.

 2. This Master Circular consolidates the existing instructions on the subject of "Risk Management and Inter-Bank Dealings" at one place. The list of underlying circulars/notifications is set out in Appendix.

 3. This Master Circular is issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2011 and would be replaced by an updated Master Circular on the subject.

 Yours faithfully,

 Salim Gangadharan

 Chief General Manager- in- Charge 

 INDEX

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/14 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5789&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.