Head Offices / Principal Offices of all

Authorized Dealers in Foreign Exchange

Dear Sirs/Madam

Interbank Foreign Exchange Swaps – Extension in cut-off time

Attention of Authorized Dealers is drawn to the instructions contained in para 1 of FE Circular No. 16 dated November 01, 2004 relating to the Cut-off timings for FX dealing by Banks’ Treasuries.

In order to facilitate Authorized Dealers (ADs) to better manage their cash flows, it has now been decided to extend the cut-off time for Foreign Exchange Swaps in the interbank market upto 4:30 pm Monday through Friday and upto 1:00 pm on Saturday. The extended timings will be applicable only for normal interbank Foreign Exchange Swaps involving two simultaneous transactions with the same AD and exclude any structured Foreign Exchange Swaps i.e. two outright transactions with different ADs.

The above instructions shall come into effect from January 02, 2006. Besides the above, other contents of the aforementioned FE Circular No. 16 dated November 01, 2004 remain unchanged and should continue to be followed meticulously.