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    Question

    In the RBI’s circular on hedging foreign exchange

    risk, what is the maximum notional amount for derivative contracts involving INR without requiring underlying exposure?
    A USD 50 million Correct Answer Incorrect Answer
    B USD 75 million Correct Answer Incorrect Answer
    C USD 150 million Correct Answer Incorrect Answer
    D USD 100 million Correct Answer Incorrect Answer
    E USD 200 million Correct Answer Incorrect Answer

    Solution

    As per the circular on "Risk Management and Inter-Bank Dealings," derivative contracts involving INR can go up to USD 100 million without needing underlying exposure.

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