RBI Partially Lifts Restrictions on Rupee Derivative Trades
The Reserve Bank of India eased curbs on rupee derivative trades today. The bank lifted bans on non-deliverable forwards and rebooking canceled contracts.
The central bank of India has announced a partial withdrawal of restrictions previously placed on certain rupee derivative trades. This policy reversal comes after the Reserve Bank of India (RBI) implemented strict measures earlier in April to combat the currency's decline toward record lows.
Under the new directives, the RBI has rescinded instructions that prohibited authorized dealers from offering non-deliverable forwards to both resident and non-resident users. Additionally, the regulator has lifted the ban that prevented market participants from rebooking foreign exchange derivative contracts that had been canceled since the start of April.
