Overview
- RBI, which on Monday rolled back parts of its April 1 order, let banks resume rupee non-deliverable forwards for clients and rebook canceled hedges to serve real trade needs.
- Deals with related parties remain barred except for canceling or rolling over existing contracts and for back-to-back trades with unrelated overseas clients.
- The $100 million daily cap on banks’ net open rupee positions from March 27 stays in place to curb risky positioning across markets.
- The rupee surrendered early gains on Monday and closed near 93.10 per dollar as fresh West Asia tensions and pricier oil raised demand for dollars.
- Banks have been slow to restart these offshore bets on Tuesday due to compliance risk and thinner arbitrage, and NDFs — cash‑settled rupee contracts traded outside India — now price only 7–8 paise over onshore rates.