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Informist, Monday, Apr. 20, 2026

--RBI withdraws Apr 1 circular on FX risk mgmt, interbank dealings 

--RBI:Banks can cancel FX derivative contracts in INR with related parties 

--RBI:Banks can rollover FX derivative contracts in INR with related parties 

--RBI:No FX derivative related party-trade in INR for bks, with 2 exceptions 

MUMBAI – The Reserve Bank of India Monday eased some restrictions on banks' foreign exchange derivatives trades, which it had imposed earlier this month to support the rupee. The central bank withdrew measures issued on Apr. 1 that prohibited authorised dealers from offering resident and non-resident clients non-deliverable forwards contracts involving the rupee. 

The RBI also rolled back curbs barring banks from rebooking any foreign ‌exchange derivative contract cancelled after Apr. 1. The regulator said banks can cancel and roll over foreign exchange derivative contracts involving the rupee with their related parties and transactions undertaken with non-related non-resident users on a back-to-back basis. 

These instructions will be applicable with immediate effect, the RBI said. The relaxations come after RBI Governor Sanjay Malhotra said earlier this month that the recent regulatory measures in the foreign exchange segment were not permanent and stuctural.  End

Reported by Meera Nair

Edited by Avishek Dutta

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