This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.

This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.

Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.

By clicking on the "I understand and agree" button below, the user acknowledges that:

  • This website is not a mode of advertisement, promotion, personal communication, or solicitation of any sort whatsoever and the user wishes to gain information about us for his/her own reasons;
  • Entering into this website does not establish a lawyer-client relationship.

We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.

JC - Legal Updates - Some respite under LEF:- CRM for offsetting gross exposure of foreign bank branches in India to Head Office

Legal Updates

13 Sep 2021

Some respite under LEF:- CRM for offsetting gross exposure of foreign bank branches in India to Head Office

The Indian branches of foreign banks can now reckon cash/unencumbered securities from the Head Office (HO) or remittable reserved surplus in Indian books, held with the Reserve Bank of India (RBI) as the credit risk mitigation (CRM) under Large Exposure Framework

Such CRM technique can be used for offsetting gross exposure of non-centrally cleared derivative transactions of foreign bank branches in India to their HO.

As advised by us previously to some of our clients, RBI has also disallowed double counting of such funds/securities, as both for CRM and to fulfil regulatory/statutory requirements.

Other conditions:

(a)      Banks to furnish an annual undertaking; and

(b)      CRM has to be in compliance with the Basel Norms.

RBI has also stated that the derivative contracts executed prior to 1st April 2019 will be exempted while computing the exposure on the HO.


For any further information, please contact Mr. Jayesh H (jayesh.h@jclex.com) or Ms. Smrithi Nair (smrithi.nair@jclex.com).