RBI bans nondeliverable rupee derivatives effective April 1, 2026
Business
The RBI just rolled out stricter rules for forex derivatives, aiming to strengthen risk management and ensuring greater discipline in the forex derivatives market.
Starting April 1, 2026, authorized dealers can no longer offer nondeliverable-rupee derivative contracts to resident and non-resident users.
Deliverable contracts are still allowed but only if you're actually hedging real risks.
RBI bars rebooking and related-party derivatives
These new guidelines respond to shifts in the forex market and also ban rebooking any canceled contracts.
Plus, dealers can't enter into derivative deals with related parties as defined by accounting standards (Ind AS 24 and IAS 24).
All of this falls under FEMA, and will stay in place until RBI says otherwise.