MUMBAI, April 6 (Reuters) - The Reserve Bank of India
said it is proposing to permit banks with IFSC banking units to
offer non-deliverable forex derivative contracts involving the
Indian rupee to resident users in the onshore market.
IFSC Banking Unit or an "IBU" is a bank permitted by the
Reserve Bank of India to operate from an International Financial
Services Centre (IFSC).
IFSC banking units were earlier permitted to transact in
rupee NDF forex derivatives contracts with non-residents and
with other eligible banks.
This measure will further deepen the FX market in India and
provide enhanced flexibility to residents in meeting their
hedging requirements, RBI governor Shaktikanta Das said in his
policy speech.
(Reporting by Nimesh Vora; Editing by Nivedita Bhattacharjee)
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