Sunday, March 16, 2025 | 02:57 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Banks can offer NDF contracts to resident Indians for hedging: RBI

MUMBAI (Reuters) - India's central bank has issued rules allowing banks to offer non-deliverable forward contracts involving the rupee to resident Indians.

Reserve Bank of India, RBI

Reuters MUMBAI

Listen to This Article

MUMBAI (Reuters) - India's central bank has issued rules allowing banks to offer non-deliverable forward contracts involving the rupee to resident Indians.

These contracts can be issued to non-retail residents for hedging purposes and settled in Indian rupees, the Reserve Bank of India said in a notification.

For contracts with a person resident outside India, the settlement can be in Indian rupees or any foreign currency, it said.

The central bank had announced its plans to expand the NDF market in April but rules were awaited.

Banks can issue these contracts via IFSC banking units. An IFSC Banking Unit, or "IBU", is a bank permitted by the Reserve Bank of India to operate from an International Financial Services Centre (IFSC).

 

 

(Reporting by Ira Dugal; Editing by Anil D'Silva)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Topics : RBI Banks

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 06 2023 | 9:35 PM IST

Explore News