RBI bans NDFs and rebookings to steady rupee, curb speculation
The Reserve Bank of India just rolled out strict new rules to keep the rupee steady and stop big-money speculation.
After the RBI banned banks from offering certain types of currency contracts (like NDFs) and stopped them from rebooking canceled deals, the rupee bounced back from a record low, hoping to close loopholes that traders were using.
Banks face tighter forex position limits
These are the harshest forex rules in more than a decade, mainly targeting risky moves in the $149 billion-a-day offshore market that the RBI was trying to curb after a major rupee drop earlier this year.
Banks now have tighter limits on their trading positions, which could make things trickier for them (estimated losses could hit ₹40-50 billion), but it's all about protecting the currency and making sure everyone plays fair.