Eliminating Foreign Exchange Uncertainty.
Secure your business against market volatility with customized forward covers that lock in future exchange rates for your trade transactions.
Forward contract is a mechanism through which exchange rate is fixed in advance for purchase or sale of foreign currency at a future date. You can book forward contracts with us to hedge your exchange rate risk inherent in various foreign exchange transactions. As an exporter you will be able to calculate the amount realizable on your export of goods in home currency. Similarly as an importer, you can determine the future cost of your imports in home currency.
At Bharat Bank, we help you "hedge" this risk by guaranteeing a specific conversion rate for your future receivables or payables, allowing you to plan your finances with 100% certainty.
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|
Feature |
Details |
|---|---|
|
Contract Types |
Fixed Date (Specific date) or Option Forward (Any day within a 30-day window). |
|
Supported Currencies |
USD, GBP, EUR, JPY, SGD, AED, AUD, CAD. |
|
Max Tenure |
Typically up to 12 Months |
|
Pricing |
Spot Rate/Forward Premium/Discount (Market-linked). |
|
Margin |
Usually 5% to 10% of the contract value (Cash or FD) or as per sanctioned limit. |
|
Benefit for Exporters |
Exporters often earn a Premium on top of the spot rate (for USD/INR). |
- Fixed Date Forward: You commit to executing the transaction on a specific maturity date.
- Option Forward Contract: Provides flexibility. You can utilize the contract on any day within a pre-defined "option period" (e.g., between the 1st and 30th of a specific month).
- Cross-Currency Forwards: Hedge risk between two foreign currencies (e.g., EUR/USD) if your trade does not involve the Indian Rupee directly.
- Nostro-based Hedging: Lock in rates for funds held in your EEFC (Exchange Earner's Foreign Currency) account.
- Cancellation: If your export order is cancelled, you can cancel the forward contract at the prevailing market rate. Any exchange loss will be recovered from the customer;
- Rebooking: Under the FEMA 2026 Regulations, residents can rebook cancelled contracts for current account transactions (imports/exports) regardless of the tenure, provided there is an underlying exposure.
- Grace Period: A 3-day grace period is provided after the maturity date for cancellation.
|
Feature |
Details |
|---|---|
|
Contract Types |
Fixed Date (Specific date) or Option Forward (Any day within a 30-day window). |
|
Supported Currencies |
USD, GBP, EUR, JPY, SGD, AED, AUD, CAD. |
|
Max Tenure |
Typically up to 12 Months |
|
Pricing |
Spot Rate/Forward Premium/Discount (Market-linked). |
|
Margin |
Usually 5% to 10% of the contract value (Cash or FD) or as per sanctioned limit. |
|
Benefit for Exporters |
Exporters often earn a Premium on top of the spot rate (for USD/INR). |
- Fixed Date Forward: You commit to executing the transaction on a specific maturity date.
- Option Forward Contract: Provides flexibility. You can utilize the contract on any day within a pre-defined "option period" (e.g., between the 1st and 30th of a specific month).
- Cross-Currency Forwards: Hedge risk between two foreign currencies (e.g., EUR/USD) if your trade does not involve the Indian Rupee directly.
- Nostro-based Hedging: Lock in rates for funds held in your EEFC (Exchange Earner's Foreign Currency) account.
- Cancellation: If your export order is cancelled, you can cancel the forward contract at the prevailing market rate. Any exchange loss will be recovered from the customer;
- Rebooking: Under the FEMA 2026 Regulations, residents can rebook cancelled contracts for current account transactions (imports/exports) regardless of the tenure, provided there is an underlying exposure.
- Grace Period: A 3-day grace period is provided after the maturity date for cancellation.