RBI partially rolls back rupee curbs

PTI

mumbai

The Reserve Bank of India on Monday partially withdrew directives issued on April 1 to curb excessive speculation in the rupee. Under the revised directives effective immediately, authorised dealers can resume offering non-deliverable derivative contracts (NDDC) involving the rupee to resident or non-resident users, but have to contend with some restrictions on related party transactions. 

"It has now been decided to withdraw the instructions issued on April 1, 2026. Further, it has been decided that authorised dealers shall not undertake any foreign exchange derivative contract involving Indian rupee with their related parties," the RBI said in a notification. Amid significant pressure on the rupee, the central bank had taken the surprise measures to restrict speculative bets on the currency. Two days prior, it had capped the net open positions at $100 million.

The RBI later said the surprise measures were taken after observing positions by participants that created an artificial scarcity of the US dollar, and had promised to roll back measures. On Monday, the central bank said there will be some exceptions on the related parties front as well, which will enable authorised dealers to undertake foreign exchange derivative contract cancellation and rollover of existing contracts, and transactions undertaken with non-related non-resident users on a back-to-back basis.