Reserve Bank of India (RBI) bars banks from offering non-deliverable INR derivatives and rebooking cancelled contracts

Exam-focused facts from the 4 April 2026 current affairs briefing.

Key facts

Reserve Bank of India (RBI) has barred authorised dealers from offering non-deliverable derivative contracts involving the Indian rupee to residents or non-residents.
Deliverable foreign exchange derivatives allowed only for hedging and users must not hold offsetting non-deliverable positions.
Rebooking of any cancelled foreign exchange derivative contract involving INR is not permitted after the circular issued on Wednesday.
Authorised dealers are prohibited from undertaking INR derivative transactions with related parties as defined under Ind AS 24 or IAS 24.
The revised directions are effective immediately and issued under FEMA provisions until further review.
The Indian rupee appreciated 2 per cent to 92.94 per dollar following the central bank’s measures to curb speculative trading.