The Reserve Bank of India lifts certain restrictions on rupee transactions

Golden Ten Data reported on April 20 that the Reserve Bank of India on Monday lifted certain restrictions on some types of rupee derivatives trading. Previously, the central bank had implemented such measures in April to prevent the rupee from continually hitting record lows. The Reserve Bank of India has withdrawn its earlier directive prohibiting authorized dealers from offering non-deliverable forward transactions to resident and non-resident users. At the same time, the bank also removed the restriction that barred users from rebooking forex derivatives contracts canceled after April 1. The new notice also states that authorized dealers are not allowed to enter into forex derivatives contracts involving the Indian rupee with related parties, but may cancel or renew existing contracts and conduct individual transactions with unrelated non-resident users.