RBI restricts banks from offshore rupee bets
market hours1 source ↓written by the desknot a recommendation
The RBI has imposed new restrictions on banks regarding rupee-linked derivatives, banning non-deliverable contracts for both residents and non-residents. This move aims to stabilize the currency amid geopolitical pressures. Deliverable derivatives remain available for genuine hedging, but practices that blur hedging and speculation are curtailed. 📉
• Non-deliverable contracts banned
• Deliverable derivatives allowed for hedging only
• Restrictions on rebooking cancelled contracts
These measures may impact trading strategies in the forex market.
Not investment advice. For informational purposes only.