 "Photo: Bloomberg")
MUMBAI (Reuters) - The Reserve Bank of India (RBI) has asked some banks to stop taking fresh arbitrage positions in the non-deliverable forwards market, four bankers told Reuters.
"The RBI has told us not to take new outright arbitrage positions," a senior trader at a private sector bank said.
"Swap arbitrage positions are still allowed."
The central bank has verbally communicated the directions and there has been no written communication, two bankers said.
While the RBI spoke to these two banks directly, two other bankers said they were aware of such a development.
The sources spoke on condition of anonymity as they are not authorised to speak to the media.
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