The Reserve Bank of India has proposed allowing banks with IFSC banking operations to issue non-deliverable foreign exchange derivative contracts involving the Indian rupee to onshore consumers.
IFSC Banking Unit, or IBU,” refers to a bank authorised to operate from an International Financial Services Centre by the Reserve Bank of India (IFSC).
Formerly, IFSC banking units were able to engage in transactions involving rupee NDF FX futures contracts with non-residents and other qualified banks.
In his policy address, Shaktikanta Das, governor of the Reserve Bank of India (RBI), said that this move would strengthen India’s foreign exchange (FX) market and give people more options for meeting their hedging obligations.
