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India's Central Bank Partially Rolls Back Rupee Curbs
The central bank again allows non-deliverable forwards for residents and overseas users, while keeping strict limits on related-party rupee trades.
- On Monday, the Reserve Bank of India rolled back restrictions on rupee derivative trades, restoring non-deliverable forward trading and contract rebooking. The move partially reverses measures implemented earlier this month to arrest the currency's slide past 95 against the dollar.
- To limit speculative activity, the Reserve Bank of India introduced temporary curbs on April 1 amid pressure from the West Asia conflict. These measures successfully sparked a bounce of about 2% in the South Asian currency.
- Dealers can now rollover existing contracts with non-residents on a "back-to-back basis," though the RBI maintains a $100 million limit on banks' net open rupee positions. Banks remain prohibited from entering new derivative contracts with related parties.
- An anonymous source stated the April 1 instructions "were meant to be temporary in nature" and "have had the desired impact and hence are no longer needed." The shift aims to restore normal hedging activity while curbing speculative trades.
- Heightened West Asia tensions continue to drive demand for the greenback and keep crude prices firm, as the rupee pared early gains Monday to settle 21 paise lower at 93.12 against the US dollar. Market volatility persists despite the policy shift.
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ABP NewsReposted by 
Cryptocurrency News | Cryptocurrency Prices | Market Cap
Cryptocurrency News | Cryptocurrency Prices | Market CapRBI Changes Rupee Rules Again: Here’s What’s Different Now
The RBI has partially rolled back curbs on rupee derivatives introduced earlier this month to curb speculation, allowing NDF trading to resume with restrictions.
·India
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Times of IndiaReposted by 
The Economic Times
The Economic TimesRBI allows NDF contracts to clients, rebooking of related party trades
The Reserve Bank of India has made a pivotal move by retracting its earlier April 1 directive, which had restricted banks from offering non-deliverable forward contracts and barred the rebooking of cancelled foreign exchange derivative contracts. This reversal allows banks to enjoy increased operational flexibility, fostering a more fluid trading environment.
·India
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Total News Sources13
Leaning Left2Leaning Right3Center1Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 33%
C 17%
R 50%
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