Categories: Foreign Exchange

FEDAI RULES: Business Hours for quoting FX rates

EFFECTIVE FROM 01 APRIL 2019, in the Inter-bank forex market for quoting exchange rate of Indian Rupees (INR)/Foreign Currency (FCY), business hours would be between 9.00 a.m. and 5.00 p.m. The customer transaction for INR/FCY should not be undertaken by the Authorised Dealers beyond 4.30 p.m. on all working days.
The cut-off time specified above is not applicable to cross-currency transactions for interbank/customers (The individual customers including joint account or a proprietary firm). ADs are permitted to undertake cross-currency transactions during extended hours, provided charges including exchange rate for conversion be confirmed from a customer prior to undertaking the transaction and Net Overnight Open Position (NOOP) Limit is maintained all the times. The Managements of the banks shall lay down the policy for extended dealing hours of cross-currency transactions by the AD branches.
Known Holidays and sudden holidays:
For the purpose of the Foreign Exchange business, Saturday will not be treated as a working day. A holiday which is known at least 3 working days before the date is a “known holiday”. The holiday which is not a ‘known holiday’ is a “sudden declared holiday”.
Illustrations: Suppose days 1, 2, 3 and 4 are all working days. If day 4 is declared as a holiday on or after day 1, it will be a suddenly declared holiday

Read following articles related to FEDAI rules

  1. What is the role of FEDAI?
  2. Important FEDAI Rules
  3. FEDAI rules regarding Foreign Exchange Contracts
  4. FEDAI rule: Transfer of funds between Vostro Accounts with two banks explained
  5. FEDAI rules related to clean instruments/ inward remittance
  6. FEDAI rules related to import transactions
  7. FEDAI RULEs related to export transactions
  8. FEDAI Rule: Export Bills sent for collection
  9. FEDAI rules: Interest/Swap charges in case of Substitution/Change in Tenor of a bill
  10. FEDAI rules related to Normal Transit Period and the notional due date
  11. FEDAI RULES: Business Hours for quoting FX rates
Surendra Naik

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Surendra Naik

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