business / news / / The Economic Times
The Reserve Bank of India is tightening oversight of foreign-exchange markets and non-deliverable forward (NDF) norms.
The RBI has capped banks' net open foreign-exchange positions at $100 million from April 10.
KEY POINTS
- Banks are now prohibited from offering rupee NDF contracts and must unwind existing positions immediately.
- The RBI's forward book in the NDF market reached $77 billion at end-February, an 11-month high.
- Arbitrage opportunities between onshore and offshore markets have narrowed but not been fully eliminated.
- Price discovery in the NDF market will now be more influenced by global players' positioning.
COMPANIES
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