RBI
RBI Announces Third Round of Rupee Defence Measures
12 October 2026 · www.ndtvprofit.com
The RBI has barred authorised dealers from allowing rebooking of cancelled rupee-linked forex derivatives and cut the no-underlying-exposure derivative threshold to $5 million from $100 million. These steps aim to curb speculative hedging and reduce dollar demand.
Points to Remember
- RBI barred authorised dealers from permitting rebooking of cancelled rupee-linked forex derivative contracts.
- Threshold for derivative transactions without underlying exposure reduced to $5 million from $100 million.
- Banks must hold 20% cash reserve against qualifying foreign-currency purchase hedges above $2 million.
- Special window for public-sector oil marketing companies introduced to meet daily dollar requirements outside the regular market.
- Rupee opened about 98 paise stronger on Monday following the measures, but analysts question sustainability.
Why it matters
The new hedging rules and cash reserve requirement may increase costs for importers and affect derivative product pricing, so expect customer queries on hedging and potential changes in forex transaction charges.
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