Home / Business and Economy / RBI Eases Forex Curbs: Hedging Rules Relaxed
RBI Eases Forex Curbs: Hedging Rules Relaxed
20 Apr
Summary
- Corporates can now rebook previously cancelled hedge contracts.
- Banks can offer offshore market quotes to corporates.
- A March 28 directive capping derivative positions remains.
The Reserve Bank of India has initiated a phased easing of foreign exchange market restrictions, signaling a move away from curbs introduced to curb speculative activity. As of April 20, 2026, corporates have been granted permission to rebook previously cancelled hedge contracts, reinstating crucial flexibility in managing currency risks. This adjustment follows a directive issued on April 1 that had initially restricted such activities.
Furthermore, banks are now authorized to provide quotes to corporates within the offshore, or non-deliverable forward (NDF), market. This allows companies greater capability in hedging their import and export exposures. These rollbacks are consistent with earlier statements from the RBI Governor, who had indicated that the measures implemented on March 28 and April 1 were temporary.
While the April 1 circular restricting hedging has been withdrawn, a directive from March 28 remains in effect. This directive caps banks' open derivative positions in the onshore market at $100 million.
