Commodity hedging – RBI Guidelines
RBI has issued instructions regarding commodity hedging and risk management.
(i) AD Category – I banks authorised by RBI may permit domestic producers/users to hedge their price list on aluminium, copper, lead, nickel and zinc in international commodity exchanges.
(ii) The bank may approach RBI for permission on behalf of customers.
RBI Circular No. 66/2007, Dated May 31, 2007