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Listen to this article in summarized format The move is the latest in a slew of measures announced by the central bank since Saturday aimed at supporting the rupee, which has been falling due to steep oil prices and capital outflows Banks with units in India's International Financial Services Centre and some primary dealers, which until now could offer non-deliverable rupee derivatives to non-resident users for any purpose, can now offer them only for hedging, the RBI said Monday Authorised dealers will also be required to maintain a foreign exchange risk reserve for foreign exchange derivative contracts involving the rupee undertaken to hedge the currency risk of their own assets and liabilities The reserve applies to all rupee currency contracts in which the authorised dealer buys foreign currency against the rupee, and equals 20% of the rupee equivalent of the notional amount of each contract The reserve must be deposited in cash with the RBI daily and kept until the contract ends Non-deliverable derivative contracts are settled in cash, usually in dollars, without any rupees changing hands Reuters reported earlier on Monday that banks have asked the RBI to scrap the 20% cash deposit for FX derivatives used to hedge current-account exposures and charge a flat fee instead The rupee, which had fallen more than 6% this year, jumped 1% on Monday after RBI's weekend announcements (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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