CONCLUSION

The advent of Globalization has witnessed a rapid rise in the quantum of cross border flows
involving different currencies, posing challenges of shift from low-risk to high-risk
operations in foreign exchange transactions. This Study explains that very few customers of
the bank are aware of the derivatives and are using them. The non-users of derivatives have
fear of High Costs of as reasons for not using them. Even the users of derivatives have
concerns arising from using them. Many of the customers do not have adequate knowledge
of the use of derivatives. Hedging is always done only with the Forward contracts. In most
cases, Banks provide the necessary expertise and advice. The Exchange Risk Management
practices in India are evolving at a slow pace. To conclude, it is identified that there is need
for a greater sense of urgency in developing foreign exchange market fully and using the
hedging instruments effectively.