QUESTION 01.

You have received a Swift advice from your Middle East correspondent stating that: it has
placed to the credit of your account with your New York correspondent a sum of US$
500,000 and requesting you to credit equivalent value in Rupees to their Rupee account with
you. Interbank Rates in Mumbai are 71.4250/71.4350.
a. What rate would you apply for this transaction?
b. How much Rupee would you credit to the account of the Middle East correspondent
with you?
c. . If your Middle East correspondent would like to have a credit of INR 5 Million, how
much amount of USD should be credited to your Nostro account?
QUESTION – 2
Your export customer submitted a sight bill for USD 100,000 for negotiation. The rates are
USD 1 = INR 71.2500/2600
Customer requests the following:
a. Retain 50% of the bill amount in EEFC account
b. Pay Indian agent’s commission @ 0.50%
What is the amount of INR credited to the current account if the exchange margin is @
0.15%

QUESTION - 3
Given that the interbank rate is GBP/INR – 99.2550/75 You have been authorized to retain
margin of 0.080% for a transaction involving inward remittance of GBP100,000 value spot.
In Rupee terms how much will your customer get and what is the effective exchange rate?

QUESTION 04
A customer offers you a sight bill for SGD 50,000 on 02.07.2021 under a letter of credit
established in his favour by HSBC, Singapore. Assuming the following, what Rupee amount
will you credit to his account?
Interbank SGD 1 = 52.7800/7900
Transit Period 25 days; Interest to be charged is @ 9% per annum
Exchange margin 0.10%
QUESTION 05
An Importer has to retire a bill for FFR 1,00,000/- due today. The exchange rate
prevailing in the interbank is FFR/INR : 87.29/31. Exchange margin for Buying is 0.08 %
and for selling is 0.10%. What is the rupee equivalent to be collected from the importer?

QUESTION 06
On 10th June 2021, your customer requests for booking a forward contract for their
export bill for CAD 1,00,000 to be realized in the month of Sept 2021.
Given that spot CAD/INR is 59.31/35 and forward points are as under
July : 12/ 10Ps , Aug : 20/15 Ps , Sept : 28/22 Ps; Margin to be charged is INR 0.05
per CAD
Compute the rate applicable.
QUESTION: 7
An Importer customer approaches you on 1st May 2021 for retirement of their import bill for
USD 10, 00,000 due on 30th Sept 2021.
Given that Spot inter-bank rate is, USD/INR: 72.8500/8600 & forward points : June -
0.1250/0.1350, July - 0.2950/0.3000, Aug – 0.5500/0.5600 &
Sept – 0.7500/0.7600; exchange margin : 0.10%
Compute the exchange rate and amount of INR to be debited to customer’s account
QUESTION: 8
Your Importer Client approaches you to extend the validity of a forward contract booked @
73.4125 due for delivery 2 days later , for a further period of 2 months.
The rates are : USD/INR – 74.5150/5250
Forward points: 1 M – 09/10, 2 M – 15/17 , 3 M – 20/22
Exchange margin @ 0.10% for Purchase and 0.15% for sale.
Compute the profit/loss for the customer in cancellation of the contract. Also compute the
rate for re-booking the Forward contract.
QUESTION – 9
Compute the rate for retirement of an import bill for GBP 100,000. The rates are:
GBP/USD – 1.2175/85 & USD/INR – 72.50/60 and exchange margin 0.10%

QUESTION – 10
What is the exchange rate negotiation of an export bill for CAD 100,000 . Given that
USD/INR – 72.30/40 & USD/CAD – 1.3450/60 and exchange margin – 0.15%

QUESTION – 11
Compute the rate for issue of a DD for JPY 1 Million if the inter-bank rates are
USD/INR – 72.9200/9250 & USD/JPY – 115.40/45 ( ignore exchange margin). Also find the
rate for negotiation of an export bill for JPY 100 Million

Question – 12
Your bank is quoting as under on a particular day
Spot USD/INR: 73.40/45 and
Cash/Tom : 02/05 Ps
Cash/Spot : 06/09 Ps
1 Week forward: 15/20 Ps ,1 Month forward : 40/45 Ps
2 Month forward: 80/90 Ps,3 Month forward : 110/120 Ps
Your foreign correspondents remits USD 1 Million and request you to credit its rupee
equivalent to their Vostro account for value date today. If the exchange margin is 3 ps per
USD,
a. What is the exchange rate for this transaction &
b. What is the rupee equivalent you will credit to their vostro account?

QUESTION - 13
Your bank is quoting USD/GBP at 0.78/0.79 and USD/SGD at 1.26/28. Your customer has
remitted 1 Million GBP and request you to open a FCNR (B) deposit in SGD. What is the
amount of FCNR Deposit in SGD.
SWIFT charges to be recovered is SGD 20.