INTRODUCTION

FEDAI was set up in 1958 as an Association of banks dealing in foreign exchange in India (typically called Authorized Dealers ADs) as a self-regulatory body and is incorporated under Section 25 of The Companies Act, 1956. It's major activities include framing of rules governing the conduct of inter-bank foreign exchange business among banks vis--vis public and liaison with RBI for reforms and development of Forex market An association of banks specializing in the foreign exchange activities in India. The Foreign Exchange Dealers Association of India, which was created in 1958, regulates the governing rules and determines the commissions and charges associated with the interbank foreign exchange business. FEDAI determines many of the rules that overlook the day-to-day Forex transactions in India. In addition to rule setting, FEDAI assists member banks by acting as an advisor and assists with the training of personnel. The association is responsible for accrediting India's foreign exchange brokers and announcing the exchange rates to its member banks. The role and responsibilities of FEDAI are as follows:

Formulations of FEDAI guidelines and FEDAI rules for Forex business. Training of bank personnel in the areas of Foreign Exchange Business. Accreditation of Forex Brokers. Advising/Assisting member banks in settling issues/matters in their dealings. Represent member banks on Government/Reserve Bank of India and other bodies. Rules of FEDAI also include announcement of daily and periodical rates to its member banks.

FEDAI guidelines play an important role in the functioning of the markets and work in close coordination with Reserve Bank of India (RBI), other organizations like Fixed Income Money Market and Derivatives Association (FIMMDA), the Forex Association of India and various other market participants. Presently some of the functions are as follows:

Guidelines and Rules for Forex Business. Training of Bank Personnel in the areas of Foreign Exchange Business. Accreditation of Forex Brokers Advising/Assisting member banks in settling issues/matters in their dealings. Represent member banks on Government/Reserve Bank of India/Other Bodies. Announcement of daily and periodical rates to member banks.

Due to continuing integration of the global financial markets and increased pace of de-regulation, the role of self-regulatory organizations like FEDAI has also transformed. In such an environment, FEDAI plays a catalytic role for smooth functioning of the markets through closer co-ordination with the RBI, other organizations like FIMMDA, the Forex Association of India and various market participants. FEDAI also maximizes the benefits derived from synergies of member banks through innovation in areas like new customized products, bench marking against international standards on accounting, market practices, risk management systems, etc.

STRUCTURE OF FEDAI
FEDAI as an organization has the following broad anatomy - MEMBER BANKS - MANAGING COMMITTE MEMBERS - TECHNICAL SUB COMMITTES - FEDAI LOCAL COMMITTEES

1. Member Banks
Public Sector Banks Foreign Banks Private Sector Banks / Co-Operative Banks Financial Institutions / Others

Public Sector Banks

1. Allahabad Bank 2. Andhra Bank 3. Bank of Baroda 4. Bank of India 5. Bank of Maharashtra 6. Canara Bank 7. Central Bank of India 8. Corporation Bank 9. Dena Bank 10. IDBI Bank Ltd 11. Indian Bank 12. Indian Overseas Bank 13. Oriental Bank of Commerce 14. Punjab & Sind Bank Top 15. Punjab National Bank 16. State Bank of Bikaner & Jaipur 17. State Bank of Hyderabad 18. State Bank of India 19. State Bank of Mysore 20. State Bank of Patiala 21. State Bank of Travancore 22. Syndicate Bank 23. UCO Bank 24. Union Bank of India 25. United Bank of India 26. Vijaya Bank

Foreign Banks
1. AB Bank Ltd 2. Abu Dhabi Commercial Bank 3. Antwerp Diamond Bank N.V. 4. Australia and New Zealand Banking Group Limited 19. Firstrand Bank 20. The Hongkong and Shanghai Banking Corporation Limited 21. JP Morgan Chase Bank N.A. 22. JSC VTB Bank 23. Krung Thai Bank Public Company Limited 24. MashreqBank p.s.c 25. Mizuho Corporate Bank Limited 26. Oman International Bank S.A.O.G. 27. Rabobank International (Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.) 28. The Royal Bank of Scotland N.V. 29. SBERBANK 30. Shinhan Bank 31. Societe Generale 32. Sonali Bank Limited 33. Standard Chartered Bank 34. State Bank of Mauritius Limited 35. UBS Bank AG 36. United Overseas Bank Limited. Top

5. Bank of America N.A. 6. Bank of Bahrain & Kuwait B.S.C. 7. Bank of Ceylon 8. The Bank of Nova Scotia 9. The Bank of Tokyo Mitsubishi UFJ Limited

10. Barclays Bank PLC 11. BNP Paribas 12. China Trust Commercial Bank 13. Citi Bank NA 14. Commonwealth Bank of Australia Credit Agricole Corporate and Investment 15. Bank 16. Credit Suisse AG 17. DBS Bank Limited 18 Deutsche Bank AG

Private Sector Banks / Co-Operative Banks

1. Abhyudaya Co-op. Bank Limited 2. AXIS Bank Limited 3. The Bharat Co op Bank (Mumbai) Ltd 4. Bombay Mercantile Co-operative Bank Limited 15. The Jammu & Kashmir Bank Limited 16. The Kalupur Commercial Co-operative Bank Limited 17. Karnataka Bank Limited 18. The Karur Vysya Bank Limited 19. Kotak Mahindra Bank Limited 20. The Lakshmi Vilas Bank Limited 21. The Maharashtra State Co-operative Bank Limited 22 The Ratnakar Bank Limited 23. The Saraswat Co-operative Bank Limited 24. The Shamrao Vithal Co-operative Bank

5. The Catholic Syrian Bank Limited 6. City Union Bank Limited 7. The Cosmos Co-operative Bank Limited 8. Development Credit Bank Limited 9. The Dhanalakshmi Bank Limited 10. The Federal Bank Limited

11. HDFC Bank Limited 12. ICICI Bank Limited 13. IndusInd Bank Limited 14. ING Vysya Bank Limited

Limited 25. The South Indian Bank Limited 26. Tamilnad Mercantile Bank Limited 27. The Thane Janata Sahakari Bank Limited 28. YES Bank Limited

Financial Institutions / Others

1. 2. 3. 4. Export-Import Bank of India IFCI Ltd Small Industries Development Bank of India Thomas Cook (India) Limited

Total Members (as of August 2011): 94

2. MANAGING COMMITTEE MEMBERS

Managing Committee For The Year 2011 - 2012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Allahabad Bank Andhra Bank AXIS Bank Limited Bank of America Bank of Baroda Bank of India Bank of Maharashtra BNP Paribas Canara Bank Central Bank of India Corporation Bank Citibank N. A. Deutsche Bank AG Export-Import Bank of India The Federal bank Limited HDFC Bank Limited Additional Vice Chairman ICICI Bank Limited IndusInd Bank Limited IDBI Bank Limited Punjab National Bank Societe Generale Vice Chairman

22 23 24 25 26 27

Standard Chartered Bank State Bank of India ... Chairman State Bank of Mauritius Limited Syndicate Bank Union Bank of India Vijaya Bank

3.TRADE AND SUB COMMITTEES

Technical Sub-Committees for the year 2007-2008 Trade and Other Transactions Forex Market Advisory Sub-Committee
Trade and Other Transactions
1. 2. 3. 4. 5. 6. 7. 8. 9. Andhra Bank Bank of Baroda Bank of India Canara Bank Central Bank of India Corporation Bank Dena Bank Development Credit Bank Limited The Federal Bank Limited

10. HDFC Bank Limited 12. The Hongkong & Shanghai Banking Corporation Limited 13. ICICI Bank Limited 14. Oriental Bank of Commerce 15. Standard Chartered Bank 16. State Bank of India 17. Societe Generale 18. Syndicate Bank 19 Union Bank of India

Forex Market
1. AXIS Bank Limited

2. 3. 4. 5. 6. 7. 8. 9.

Bank of Baroda BNP Paribas Calyon Bank Canara Bank Citibank N.A Deutsche Bank HDFC Bank Limited The Hongkong and Shanghai Banking Corporation Limited

10. ICICI Bank Limited 11. IndusInd Bank Limited 12. Industrial Development Bank of India Limited 13. Kotak Mahindra Bank Limited 14. Oriental Bank of Commerce 15. State Bank of India 16. Syndicate Bank 17. Thomas Cook (India) Limited 18. UCO Bank 19. Yes Bank Limited

Advisory Sub-Committee
1. 2. 3. 4. 5. 6. 7. 8. 9 Allahabad Bank Bank of Baroda Bank of India Bank of Maharashtra BNP Paribas Citibank N.A The Federal Bank Limited HDFC Bank Limited The Hongkong & Shanghai Banking Corporation Limited

10. ICICI Bank Limited 11. Industrial Development Bank of India Limited 12. ING Vysya Bank Limited 13. Punjab National Bank 14 Punjab & Sind Bank 15. State Bank of India 16. UCO Bank 17. Union Bank of India

4. FEDAI LOCAL COMMITTEES

List of Managing Committee Members
Centre Bangalore Chairman C/o. Canara Bank Head Office P.B. No.6648 112, J C Road Bangalore - 560 002 Managing Committee Members Canara Bank .. Chairman State Bank of Mysore .. Vice Chairman Bank of India .. Member Vijaya Bank UCO Bank Bank Muscat ING Vysya Bank ICICI Bank Limited State Bank of India United Bank of India .. Chairman Allahabad Bank .. Vice Chairman Hongkong & Shanghai Banking Corp.Ltd UCO Bank American Express Bank Punjab National Bank State Bank of Bikaner & Jaipur UTI Bank Limited State Bank of India State Bank of Travancore .. Chairman Catholic Syrian Bank Limited Lord Krishna Bank Limited South Indian Bank Limited Federal Bank Limited Oman International Bank Limited UTI Bank Limited Central Bank of India Indian Overseas Bank .. Chairman Indian Bank .. Vice Chairman Canara Bank Central Bank of India Syndicate Bank American Express Bank Limited Karur Vysya Bank Limited Bharat Overseas Bank Limited State Bank of India Dena Bank ING Vysya Bank Limited Tamilnad Mercantile Bank Limited Andhra Bank Punjab National Bank .. Chairman Oriental Bank of Commerce .. Vice Chairman State Bank of India Bank of Baroda Standard Chartered Bank

Kolkata

C/o. United Bank of India International Banking Division Head Office 16 Old Court House Street, 14th Floor Kolkata - 700 001

Kochi

C/o. State Bank of Travancore Foreign Exchange Department P B No.3639, Ernakulam Kochi - 682 035

Chennai

C/o. Indian Overseas Bank Post Box No.3765 762, Anna Salai Chennai - 600 002

New Delhi C/o. Punjab National Bank Head Office 7, Bhikaiji Cama Place New Delhi - 110 066

Bank of Punjab Limited Bank of India American Express Bank Limited

RULE 1 HOURS OF BUSINESS 1.A-1 Each Authorised Dealer will establish its business hours for various types of foreign exchange transactions at each centre where its branches undertake forex business. 1.A-2 It is upto the management of each Authorised Dealer to decide whether they would like to have uniform hours of business for all categories or different business hours for different categories of forex business. 1.A-3 Heads of International Divisions/Forex Departments of Authorised Dealers shall advise their designated branches regarding the establishment of business hours for various types of foreign exchange transactions. 1.A-4 In terms of paragraph 7.1 of Reserve Bank of India guidelines for Internal Control over Foreign Exchange Business, Authorised dealers are permitted to undertake forex business on behalf of the bank during extended hours subject to the condition that the Management in each bank lays down the working hours of the dealers. Dealing Hours* The dealing hours will ordinarily be the recognised working hours of the banks at the respective centres. But if dealers are required to work longer hours it is essential that the Managements lay down the extended working hours (para 7.1 of ICG). 1.A-5 Authorised Dealers are therefore required to decide on the business hours of their forex branches, dealing rooms etc. particularly in regard to uniform hours of business for all categories of business or different business hours for different categories of forex business. Head offices of member banks should advise all their designated category A, B and C branches their banks policy in this regard so that their customers become aware of business hours within which they could place the concerned transactions with their offices.

RULE 2 EXPORT TRANSACTIONS 2.A-1 General Authorised Dealers will purchase only Approved Bills and the decision as to what is an approved bill lies solely with Authorised Dealers. This includes bills tendered under forward contracts, letters of credit, letters of guarantee, letters of authority, orders to negotiate, orders for payment and any other type of document of similar nature. Authorised Dealers will have the discretion to handle export bills on purchase/discount/negotiation or collection basis. 1 [2.A-2 Export Bills purchased/discounted/negotiated i. Application of rates Foreign currency bills will be purchased/negotiated/discounted at the Authorised Dealers current bill buying rate or at the contracted rate. Interest for the normal transit period, and usance period shall be recovered simultaneously. ii. Crystallisation and Recovery Exporters are liable for the repatriation of proceeds of the export bills negotiated/purchased/discounted or sent for collection by the Authorised Dealers. Authorised Dealers should take into account the exchange risk inherent in an unpaid export bill negotiated/purchased/discounted and transfer the exchange risk to the exporter by crystallising the foreign currency liability into rupee liability. Considering that authorised dealers are required to manage various risks, they are given freedom to decide on the period for crystallisation which may be linked to risk factors like credit perception of different types of exporter clients, operational aspects etc. Such norms devised by the banks in this regard should be transparent and should be advised to their customers well in advance. For crystallisation into Rupee liability the Authorised Dealer shall apply the ready TT selling rate of exchange ruling on the date of crystallisation. Exchange difference arising out of crystallisation to be recovered from or passed on to the customer, as the case may be. Interest shall be recovered on the date of crystallisation for the period from the date of expiry of the normal transit period/notional due date to the date of crystallisation at the appropriate rate of interest as per the guidelines issued by RBI from time to time. Export bills payable in countries with externalisation problems shall also be crystallised into rupee liability like any other unpaid export bill notwithstanding receipt of advice of payment in local currency. The unpaid export bills will be treated as outstanding under the sanctioned limit of the customer with the exchange risk open against him. iii. Realisation of Bills after crystallisation After receipt of advice of realisation, the Authorised Dealers will adjust the Rupee liability on the bill crystallised as above by applying the TT buying rate of exchange or the contracted rate in case a forward contract has been booked by the customer after crystallisation. Any difference shall be recovered from/paid to the customer. Interest for the period from the date of crystallisation to the date of realisation of the bill shall be recovered from the customer at the appropriate rate of interest for overdue export bills as permitted by Reserve Bank of India. iv. Dishonour of Bills

In case of receipt of intimation of dishonour of an export bill before the estimated crystallisation date, the bank shall recover from the customer : a. The Rupee equivalent of the bill arrived at the current ready TT selling rate. b. All foreign currency charges converted at the ruling ready TT selling rate. c. Interest at appropriate rate as per the guidelines issued by Reserve Bank of India from time to time. v. Refund of Negotiation Proceeds of unpaid bill In case refund of negotiation proceeds of a foreign currency bill is required to be made to the negotiating bank by the customer, the rate of exchange for conversion shall be the ready TT selling rate of the negotiating bank ruling on the date of refund. In addition, the customer shall be required to pay interest as per the guidelines issued by Reserve Bank of India from time of time.] 2.A-3 Application of interest i. The rates of interest applicable for all export transactions shall be as prescribed by Reserve Bank of India from time to time. ii. Concept of Normal Transit Period and Notional Due Date Concessional rate of interest on export bills is linked to the concept of normal transit period and notional due date. Normal transit period comprises the average period normally involved from the date of negotiation/purchase/discount till the receipt of bill proceeds in the Nostro account of the bank. Normal Transit Period is not to be confused with the time taken for the arrival of the goods at the destination. In case of bills payable at sight or on demand basis concessional rate of interest as directed by the RBI on export bill is applicable for the normal transit period. In case of usance bills, rate of interest as directed by the RBI on export bills is applicable for the normal transit period plus usance period. Thus an export bill payable for example at 60 days after sight will be eligible for concessional interest rate for 60 days usance plus the normal transit period of 25 days i.e. a total number of 85 days. iii. The above Rule is not applicable to export transactions on deferred payment basis. 2.A-4 Normal Transit Period i. Normal Transit Period for purposes of all bills in Foreign Currencies ...... 25 days ii. Exports to Iraq In respect of Exports to Iraq under United Nations Guidelines where payment under letters of credit is made on arrival of goods upon issuance of certificate by U.N. Agency to the effect that the exports conform to the guidelines laid down by United Nations the applicable Normal Transit Period shall be for a maximum of 120 days from the date of shipment for which concessional interest shall be recovered as directed by RBI from time to time. iii. Normal Transit Period for purposes of bills drawn in Rupees : a. In the case of bills drawn under letters of credit where reimbursement is provided at the : 3 days centre of negotiation If reimbursement for negotiation of Rupee bills drawn under a letter of credit is obtained in the centre of negotiation by debit to the non-resident account of the credit opening bank held, either with the negotiating bank itself or with any of its branches in the same centre, interest for the transit period of 3 days as allowed shall not be collected. b. In the case of bills drawn under letter of credit where reimbursement is provided at a : 7 days centre in India other than the centre of negotiation c. In the case of bills drawn under letters of credit where reimbursement is provided by banks situated outside India

and Bills not under letter of credit d. Exports to Russia against letters of credit providing for reimbursement by Reserve Bank of India under State Credit arrangements. 2.A-5 Fixed Due Date In case of export usance bills (foreign currency and rupee bills) where due dates are reckoned from date of shipment or date of bill of exchange etc. no Normal Transit Period shall be applicable, since the actual due date is known. 2.A-6 TT Reimbursement under letter of credit i. In case of negotiation of export bills where the letter of credit provides for reimbursement claim upon negotiation by Cable/SWIFT/Telex or other electronic means, the Authorised Dealer shall recover at the time of negotiation Normal Transit Period interest for five days. ii. In case such reimbursement instructions stipulate claiming of reimbursement by Cable/SWIFT/Telex or other electronic means after a certain number of days from date of negotiation/despatch of documents, this additional period shall be added to the five days stipulated above for arriving at NTP for the purpose of recovery of concessive rate of interest. iii. Overdue interest shall be recovered at appropriate rate as advised by Reserve Bank of India from time to time, in case the claim is not paid on or before the expiry date of NTP. 2.A-7 Overdue Interest Overdue interest in all cases shall be recovered from the customer in case payment is not received on or before the expiry date of Normal Transit Period in case of demand bills, and on or before the notional due date/actual due date as the case may be in case of usance bills as per RBI directives. 2.A-8 Early realisation i. In case of early realisation of export bill proportionate interest shall be refunded from the date of realisation i.e., by credit to nostro account in case of a foreign currency bill, and by debit to vostro account in case of a Rupee bill, upto the last date of normal transit period in the case of demand bill and upto the notional due date in case of usance bill. Such a refund shall become payable only on receipt of relative credit advice/statement of account by bank. ii. In case of early realisation of an export bill Authorised Dealers shall recover or pay swap cost as in case of early deliveries under a forward contract. 2.A-9 Substitution/Change in Tenor etc. i. In the case of change in the usance of a bill, concessive interest on post-shipment credit shall be charged to the customers in accordance with the directives of the Reserve Bank of India in force at the material time. In addition, the bank shall also recover/pay swap difference. Interest on outlay of funds, if any, for such swaps shall also be recovered from the customer at the rate not below the prime lending rate of the respective bank. ii. It is optional for a bank to accept delivery of bills under a contract made for the purchase of a clean TT. If a bank accepts such bills, the swap difference for the relative cover (irrespective of whether an actual swap has been done or not) shall be recovered from/paid to the merchant. Interest at the rate not below the prime lending rate of the respective bank on outlay of funds, if any, shall also be recovered from the customer. 2.B Export bills sent for collection 2.B-1 Application of rates

: 20 days : 20 days

For disposal of the proceeds of export bills sent for collection or of goods sent on consignment basis the TT buying rate ruling on the date of payment of proceeds to the exporter or the forward contract rate as the case may be shall be applied and the payment will be made in India only after the foreign currency amount is credited to the nostro account of the bank. 2.B-2 Application of interest On all Rupee loans granted against export bills sent on collection, interest shall be charged as prescribed by Reserve Bank of India from time to time for export credit. 2.B-3 Payment of Interest to exporter Authorised Dealers shall also pay interest for delay in payment to the exporters on export bills sent for collection and realised. On the assumption that the customer has complied with FEMA Guidelines and banks own requirements, the following are time limits within which the transaction should be completed by an Authorised Dealer or his Authorised Branch after the date of receipt of credit advices/statements : Type of transactions Working day/s Currency Transfer of funds received from abroad against export bills to the exporters Foreign bank. bills i. ii. Where payment is to be effected in the same branch Where payment is to be effected at the same centre but to another branch of the same bank or another bank Where payment is to be effected to a branch of the same bank or another bank at outstation centre 1 2

iii.

If transfers are not completed within the above time schedule fixed for execution of the payment orders the compensation shall be payable from the expiry of the period for execution of payment order. The rate of compensation shall be the minimum interest charged by banks on export credit as directed by Reserve Bank of India from time to time. In respect of exports to Russia, rupee settlements are made through Reserve Bank of India at present. 2.C Letter of Credit Forwarding letters of credit/amendments by VP Post is prohibited.

RULE 3 IMPORT TRANSACTIONS 3.A-1 General i. Bills shall include all documentary/clean bills received under letter/s of credit, standby letter/s of credit, letter/s of guarantee, letter/s of authority, order/s to negotiate, order/s for payment and other document/s or undertaking/s of a similar nature or on collection basis covering imports into India. ii. Establishment and amendment of all import letters of credit shall be at the discretion of the Authorised Dealers. 3.A-2 Application of rates i. For the purpose of retirement of import bills whether received under letters of credit or otherwise, the bills selling rate ruling on the date of retirement or the forward sale contract rate as the case may be shall be applied. For the purpose of crystallisation vide para 3.A-4 below, of importers liability into Rupees the bills selling rate ruling on the date of such crystallisation or the forward sale contract rate as the case may be shall be applied. ii. For the purpose of determining stamp duty on import bills, the foreign currency amount of the bills shall be converted into Rupees at the exchange rates prescribed by Government of India from time to time. 3.A-3 Application of interest i. Bills negotiated under import letters of credit shall carry commercial rate of interest as applicable to banks domestic advances from time to time and shall be recovered from the date of debit to the Authorised Dealers Nostro account to the date of crystallisation/retirement whichever is earlier. From the date of crystallisation up to the date of retirement the bills shall carry the penal rate of interest as determined by Authorised Dealers from time to time. ii. Interest remittable on interest bearing bills shall be subject to the directives of Reserve Bank of India. iii. Interest, if any, on import bills shall be recovered in full and shall not be set off against interest, if any, payable on any margins which may be held against such bills or the relative letters of credit. 3.A-4 Crystallisation of Import Bills under Letters of Credit i. All foreign currency import bills drawn under letters of credit, in the event of non-retirement shall be crystallised into Rupee liability on the 10th day after the date of receipt of documents at the letter of credit opening branch of the bank, in case of demand bills and on due date in case of usance bills at Bills Selling Rate/contracted rate as the case may be. In case the 10th day or the due date falls on a holiday or Saturday, the importers liability shall be crystallised into Rupee liability on the next working day. However, the import bill payable on demand may be crystallised before the said period of 10 days with the specific understanding and written request from the customer. ii. If the crystallisation of the Rupee liability of an import bill under the Forward Exchange Contract results in early/late delivery, the bank shall recover swap cost and interest, if any, as per Rule.

RULE 4 CLEAN INSTRUMENTS 4.A-1 Encashment of foreign currency travellers cheques and currency notes Foreign currency travellers cheques/currency notes will be encashed at the Authorised Dealers option at the travellers cheques/currency note encashment rates ruling on the date of such encashment. 4.A-2 Outward remittances Outward remittances shall be effected at the TT selling rate of the bank ruling on the date of such remittance or at the forward contract rate.
1

[4.A-3 Miscellaneous Instructions i. Payment of foreign inward remittances All foreign currency inward remittances up to an equivalent of USD 5000 shall be immediately converted into Indian Rupees. Remittances in excess of equivalent of USD 5000 shall be executed in foreign currency and the beneficiary has the option of presenting the relative instrument for payment within the maximum period prescribed under FEMA, 1999. The applicable exchange rate for conversion of the foreign currency inward remittances shall be the one prevailing as on the date of conversion of foreign currency amount into Indian Rupees by the concerned Authorised Dealer. In this connection, it is further clarified that any request from the beneficiary of the remittance for subsequent reconversion to foreign currency, including request for opening Exchange Earners Foreign Currency (EEFC) Accounts shall be done at market rate. ii. Compensation for delayed payment Authorised Dealers shall compensate the beneficiary of an inward remittance by payment of interest @ 2% over the applicable Savings Bank rate of interest in case the proceeds of the inward remittance are not paid within 10 days from the date of receipt of remittance advice from abroad for remittance up to equivalent USD 5000, or an intimation not sent to the beneficiary within 3 working days (reckoning Saturday as a working day) from the date of receipt of credit advice in respect of remittances exceeding equivalent of USD 5000. Saturday may continue to be treated as working day except for transactions involving conversion at confirmed exchange rate (other than travel related transactions like issue/encashment of foreign currency travellers cheques, foreign currency notes etc.). iii. Exchange rate of foreign currency travellers cheques and foreign currency notes Authorised Dealers shall put through transactions relating to foreign currency travellers cheques and foreign currency notes at rates of exchange determined by market conditions.]

RULE 5 FOREIGN EXCHANGE CONTRACTS 5.A-1 Contract amounts Exchange contracts shall be for definite amounts and periods. When a bill contract, mentions more than one rate for bills of different deliveries, the contract must state the amount and delivery against each such rate. 5.A-2 Option period of delivery Unless date of delivery is fixed and indicated in the contract, the option period may be specified at the discretion of the customer subject to the condition that such option period of delivery shall not extend beyond one month. If the fixed date of delivery or the last date of delivery option is a holiday/declared a holiday the delivery shall be effected/delivery option exercised on the preceding working day. Contracts permitting option of delivery must state the first and last dates of delivery. For Example 18th January to 17th February, 31st January to 28th (29th) February. Ready or Cash merchant contract shall be deliverable on the same day. Value next day contract shall be deliverable on the day immediately succeeding the contract date. A spot contract shall be deliverable on second succeeding business day following the day when the transaction is closed. A forward contract is a contract deliverable at a future date, duration of the contract being computed from spot value date at the time of transaction. 5.A-3 Place of delivery All contracts shall be understood to read to be delivered or paid for at the Bank and at the named place. 5.A-4 Date of delivery Date of delivery under forward contracts shall be : i. In case of bills/documents negotiated, purchased or discounted - the date of negotiation/purchase/discount and payment of Rupees to the customer. However, in case the documents are submitted earlier to, or later than the original delivery date, or for a different usance, the bank may treat it as proper delivery, provided there is no change in the expected date of realisation of foreign currency calculated at the time of booking of the contract. No early realisation or late delivery charges shall be recovered in such cases. ii. In case of export bills/documents sent for collection - date of payment of Rupees to the customer on realisation of the bills. iii. In case of retirement/crystallisation of import bills/documents - the date of retirement/crystallisation of liability whichever is earlier. 5.A-5 Option of delivery In all forward merchant contracts, the merchant whether a buyer or a seller will have the option of delivery. 5.A-6 Option of usance

The merchant purchase contract should state the tenor of the bills/documents. Acceptance of delivery of bills/documents drawn for a different tenor will be at the discretion of the bank. 5.A-7 Merchant quotations The exchange rate shall be quoted in direct terms i.e., so many Rupees and Paise for 1 unit of foreign currency or 100 units of foreign currencies. 5.A-8 Rounding off Rupee equivalent of the foreign currency at the agreed merchant rate Settlement of all merchant transactions shall be effected on the principle of rounding off the Rupee amounts to the nearest whole Rupee i.e., without paise. 5.A-9 Common Currencies A list of common currencies and the unit of rate quotations are as detailed below : Currencies to be quoted against one unit of foreign currency : 1. Australian Dollar 2. Bahraini Dinar 3. Canadian Dollar 4. Danish Kroner 5. Egyptian Pound 6. Hongkong Dollar 7. Kuwaiti Dinar 8. Malaysian Ringgit 9. New Zealand Dollar 10. Norwegian Kroner 11. Oman Rial 12. Qatar Riyal 13. Saudi Riyal 14. Singapore Dollar 15. Sterling Pound 16. Swedish Kroner 17. Swiss Franc 18. Thai Baht 19. UAE Dirham 20. US Dollar 21. Euro Currencies to be quoted against 100 units of foreign currencies : 1. Indonesian Rupiahs 2. Japanese Yen 3. Kenyan Schilling