The move aims to improve market flexibility after measures sought to curb the currency’s recent volatility.
Authorities now allow authorized dealers to offer non-deliverable forwards to both resident and non-resident participants.
The RBI also removed limits that prevented users from rebooking previously canceled foreign exchange derivative contracts.
These adjustments signal a more balanced approach between currency stability and market efficiency.
However, the central bank continues to enforce controls on certain transactions involving related parties.
Authorized dealers cannot enter INR derivative contracts with related entities, except under specific permitted conditions.
Exceptions include contract rollovers, cancellations, and back-to-back trades with eligible non-resident participants.
The revised framework reflects the RBI’s effort to maintain orderly currency markets while supporting trading activity.
