RBI partially rolls back derivative curbs on rupee derivative trading; NDF restrictions lifted for banks
April 20, 2026
The Reserve Bank of India on Monday partially rolled back restrictions it had placed on certain rupee derivative trades, as per Reuters. These restrictions were originally introduced earlier this month to stop the rupee from falling to successive record lows.
What has been lifted
The RBI has withdrawn two key restrictions. First, it has allowed authorised dealers, which include banks and financial institutions, to once again offer a type of currency contract called non-deliverable forwards (NDFs) to both Indian residents and overseas users, as per Reuters. Second, it has removed the ban on users rebooking foreign exchange derivative contracts that were cancelled after April 1.
What restriction remains
Not everything has been eased, however. According to the Reuters report, the RBI’s fresh notification makes clear that authorised dealers still cannot enter into rupee-related foreign exchange derivative contracts with their related parties. The only exceptions are cancelling or rolling over contracts that already exist, and transactions done with unrelated non-resident users on a back-to-back basis.
Rupee’s closing rate on April 20
The rupee pared early gains to settle 19 paise lower at 93.10 (provisional) against the U.S. dollar on Monday, pressured by heightened West Asia tensions that boosted demand for the greenback and kept crude prices firm, according to PTI.
The local unit opened at 92.73, touched an intra-day high of 92.70 and a low of 93.24 before closing weaker, as traders flagged concerns over a renewed U.S.-Iran standoff and disruption in the Strait of Hormuz, as per PTI.
The RBI has withdrawn two key restrictions. First, it has allowed authorised dealers, which include banks and financial institutions, to once again offer a type of currency contract called non-deliverable forwards (NDFs) to both Indian residents and overseas users, as per Reuters. Second, it has removed the ban on users rebooking foreign exchange derivative contracts that were cancelled after April 1.
What restriction remains
Not everything has been eased, however. According to the Reuters report, the RBI’s fresh notification makes clear that authorised dealers still cannot enter into rupee-related foreign exchange derivative contracts with their related parties. The only exceptions are cancelling or rolling over contracts that already exist, and transactions done with unrelated non-resident users on a back-to-back basis.
Rupee’s closing rate on April 20
The rupee pared early gains to settle 19 paise lower at 93.10 (provisional) against the U.S. dollar on Monday, pressured by heightened West Asia tensions that boosted demand for the greenback and kept crude prices firm, according to PTI.
The local unit opened at 92.73, touched an intra-day high of 92.70 and a low of 93.24 before closing weaker, as traders flagged concerns over a renewed U.S.-Iran standoff and disruption in the Strait of Hormuz, as per PTI.