India Tightens Rules on Rupee Non-Deliverable Contracts
The Reserve Bank of India limited overseas clients to using rupee non-deliverable derivative contracts only for hedging and widened a 20% cash reserve requirement to banks' own rupee currency hedges.
On Monday, the Reserve Bank of India tightened rules for rupee non-deliverable derivative contracts, restricting overseas clients to hedging use. It also extended the 20% cash reserve requirement to banks’ own rupee currency hedges.