RBI eases derivatives exposure guidelines for banks

The Reserve Bank of India (RBI) has eased the norms for banks to restructure derivatives
contracts by allowing them to partially or fully terminate the contract before maturity. The Central Bank said in a notice said that in such cases, if the Mark to Market (MTM) value of the derivative contract is not cash settled, banks may permit payment in instalments of the crystallised MTM of such derivative contracts (including Forex Forward Contracts).