The central bank came up with the clarification amid reports that certain authorised dealers/persons are not undertaking the sale or purchase of the Qatari currency.
"It is clarified that the Reserve Bank has not issued any instructions restricting the exchange of Qatari Riyals in India," RBI said in a notification.
Under the Foreign Exchange Management Act, Reserve Bank authorises persons to deal in foreign exchange as authorised dealers.
Several countries including Saudi Arabia, the UAE, Bahrain, Egypt, among others, cut ties to Qatar this month over allegations that the Persian Gulf country funds terrorism.