NISM Professor

RBI hedging directive

The RBI's instruction to banks to advise borrower clients to hedge commodity exposures where lending is against commodities as collateral — since a price fall impairs the bank's security as surely as physical loss would.

This one is not written up yet

The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.

Where this is taught

Free preparation for NISM Series XVI
← All terms
Something look wrong? Report it