India central bank partially withdraws restrictions on certain Indian rupee trades
- Authorized dealers could not enter into FX derivative contracts involving INR with their related parties
MUMBAI: The Reserve Bank of India on Monday rolled back some of the restrictions on certain types of rupee derivative trades, which it had initiated earlier in April to arrest the currency’s slide to successive record lows.
The RBI withdrew instructions that barred authorized dealers from offering resident and non-resident users non-deliverable forwards. It also took back curbs barring users from rebooking any foreign exchange derivative contract canceled after April 1.
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The central bank’s fresh notification also said authorized dealers could not enter into FX derivative contracts involving INR with their related parties, except for cancelling or rolling over existing contracts and transactions done with non-related non-resident users on a back-to-back basis.
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