Mumbai, April 1: Amid sharp depreciation in the rupee, the Reserve Bank on Wednesday announced more actions focused on authorised dealers (ADs).
The moves follow a “review of evolving market conditions” and are applicable immediately.
Authorised dealers (ADs) — banks authorised by RBI to deal in foreign exchange — will not be able to offer non-deliverable derivative contracts involving the Indian rupee to resident or non-resident users, the central bank said in a late-evening notification.
They may, however, continue to offer deliverable foreign exchange derivative contracts to users to meet their hedging requirements, provided that users do not undertake offsetting non-deliverable derivative positions. (PTI)
