RBI cuts forex derivative exposure threshold to $5 million
RBI tightened rules for rupee-linked forex derivatives, including reducing the threshold for certain transactions without underlying exposure to $5 million from $100 million.
The Reserve Bank of India (RBI) on October 10 tightened rules for the foreign exchange market, limiting the rebooking of cancelled rupee-linked derivative contracts and sharply lowering the threshold for certain forex derivative transactions that can be carried out without establishing underlying exposure.