The Reserve Bank of India(RBI) has vide Notification dated January 6, 2020, has issued amendment to Master Direction on Risk Management and Inter Bank Dealings. The amendment seeks to Permit Authorized Dealers Category – I banks to voluntarily undertake user and Inter-Bank transactions beyond onshore market hours.
The amendment is made following the recommendation of Task Force on Offshore Rupee Market. Section 6 is been added in Part C (Inter-Bank Foreign Exchange Dealings) by the amendment. The section permits AD Cat-I banks to offer foreign exchange prices to users at all times, out of their Indian books, either by a domestic sales team or through their overseas branches.
Click here to read the Notification.