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1. As per the revised guidelines by RBI, what is the maximum risk for custodian banks issuing irrevocable payment commitments (IPCs)?
The Reserve Bank of India (RBI) has lowered the maximum risk for custodian banks issuing irrevocable payment commitments (IPCs) from 50% to 30%. This decision follows the reduction in trade settlement time from T+2 to T+1 and T+0 for select equities by stock exchanges. The revised guidelines aim to mitigate risks associated with potential downward price movements of equities purchased by foreign institutional investors/mutual funds over two successive days from the trade date.