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Banks can sell structured derivatives abroad without consulting RBI

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Reuters MUMBAI
Last Updated : May 12 2014 | 6:10 PM IST

MUMBAI (Reuters) - The Reserve Bank of India on Monday said domestic banks will be allowed to offer structured derivatives through their overseas branches even if these products are currently not allowed in India.

The change marks a revision from rules passed in 2008 that mandated domestic lenders had to consult with the central bank before offering complex derivative products not allowed at home to overseas customers.

Offshore branches of Indian banks will need to offer these products in "established financial centres" the RBI said, mentioning as examples, New York, London Singapore, Hong Kong, Frankfurt, and Dubai, among others.

(Reporting by Neha Dasgupta; Editing by Rafael Nam)

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First Published: May 12 2014 | 5:57 PM IST

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