Restrictions on banks regarding trading in non-deliverable futures markets relaxed

13 Dec 2022 , 02:19 PM

Four bankers confirmed to Reuters on Tuesday that India’s central bank has relaxed informal limits placed on banks for trading in the non-deliverable future (NDF) market.

These limitations were put in place by the Reserve Bank of India in October to control currency volatility. In October, the rupee’s value versus the dollar fell to a historic low of 83.29.

According to one of the bankers, the rupee’s recent relative stability has presumably given RBI confidence to allow banks to once again utilize NDF.

The quote for the rupee was 82.71 to the dollar.

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