RBI allows residents to conduct FX swaps with multilateral bodies

MUMBAI (Reuters) - The Reserve Bank of India (RBI) has allowed domestic entities to conduct foreign currency-rupee swaps with multilateral agencies and allow hedging of loans.

These swap transactions would have a minimum tenor of three years, the central bank said in a circular on Thursday.

The RBI also said the Indian government needs to be a shareholding member at the multilateral or international financial institutions for the swap to go through.

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(Reporting by Neha Dasgupta; Editing by Sunil Nair)