The Reserve Bank of India vide its notification dated 18th May 2020 has allowed banks to participate in offshore non-deliverable rupee derivative markets from 1st June 2020.
Banks in India having an Authorised Dealer Category-1 license under Foreign Exchange Management Act (FEMA), 1999, and operating International Financial Services Centre (IFSC) Banking Units (IBUs), shall be eligible to offer non-deliverable derivative contracts involving the Rupee, or otherwise, to persons not resident in India. Banks can undertake such transactions through their branches in India, through their IBUs or through their foreign branches.
Click here to read the Notification.
