RBI cuts rupee derivative threshold to $5m and opens oil-company dollar window
The Reserve Bank of India has lowered the threshold for rupee derivatives without underlying documents from $100 million to $5 million and barred rebooking of cancelled contracts. Rollovers remain permitted.
A linked circular requires dealers to hold a cash reserve equal to 20 percent of the rupee notional on qualifying derivatives above $2 million when customers buy foreign currency to hedge current-account exposure. The rules took effect immediately.
Separately, the RBI said it will meet the entire daily dollar requirements of Indian Oil, Hindustan Petroleum and Bharat Petroleum through designated banks from Monday, October 12, until further notice. That demand will move outside the ordinary foreign-exchange market.
