Can you answer Hi What is ler limit?

Loan Equivalent Risk (LER) limit is sanctioned to Corporates for potential fluctuation in the contractual currency of a foreign exchange transaction (forward / option) undertaken over the transaction's stipulated time period, as determined using the historical volatility of the contractual currency. Bank executes these contracts by setting up LER(Loan Equivalent Risk) limits for the clients who need Currency Forwards. d) With reference to the specified limits for swap transactions facilitating customers to assume a foreign exchange liability, the limit will be. (a) AD Category-I banks may undertake trading in all permitted exchange traded currency derivatives within their Net Open Position Limit (NOPL) subject to limits. Request for sanction of limit for booking of forward contracts on the basis of past performance.