{
  "id": 13319350,
  "title": "RBI moves to support rupee at 96.78, cracks down on forex derivatives",
  "url": "https://urgent.news/2026/10/10/rbi-moves-to-support-rupee-at-96-78-cracks-down-on-forex-derivatives",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-10T03:39:58.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/indicators/rbi-moves-to-support-rupee-at-96-78-cracks-down-on-forex-derivatives/articleshow/134846784.cms"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) implemented measures on Saturday to bolster the weakening rupee, imposing stricter regulations on foreign exchange derivatives and introducing a cash reserve requirement for substantial trades. The rupee currently stands at 96.78 against the US dollar, nearing its lowest point of 96.95 reached in May. The revised rules prohibit authorized dealers from permitting users to rebook foreign exchange derivative contracts, whether deliverable or non-deliverable, once they have been cancelled by an authorized dealer after the directive's issuance. Contract rollovers are still permitted, as per existing regulations.\n\nAdditionally, the RBI lowered the threshold for executing foreign exchange derivative transactions to hedge contracted exposures, reducing the $100 million equivalent limit to $5 million across all authorized dealers. Similarly, the threshold for taking positions in exchange-traded currency derivatives involving the rupee has been decreased from $100 million to $5 million equivalent across all recognized stock exchanges. Furthermore, the RBI introduced a 20% cash reserve requirement for large forex derivatives with a notional value surpassing $2 million equivalent. Authorized dealers must maintain a cash reserve with the RBI, equivalent to 20% of the rupee value of each eligible transaction, applicable to foreign exchange derivative contracts involving INR aimed at hedging current account exposures when users purchase foreign currency against INR.\n\nThe RBI also mandated documentation for users entering into rupee-involving forex derivative contracts to hedge contracted exposures, requiring authorized dealers to obtain and retain an undertaking confirming that the same underlying exposure has not been hedged with another authorized dealer. These measures aim to enhance market discipline, ensure appropriate risk management, and maintain an orderly and transparent foreign exchange market. Separately, the RBI pledged to meet the complete daily foreign exchange demand of leading Indian oil corporations—Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation—from October 12, removing their dollar requirements from the forex market and alleviating pressure on the rupee, which is trading near its all-time low against the US dollar.",
  "summary": "The Reserve Bank of India introduced new measures to address the pressure on the rupee. These measures include tightening foreign exchange derivative rules and limiting rebooking of cancelled contracts. Furthermore, a 20% cash reserve requirement has been established for large forex derivatives transactions. The central bank aims to enhance market discipline and promote effective risk management…",
  "key_points": [
    "RBI imposed stricter regulations on forex derivatives to support weakening rupee.",
    "Authorized dealers prohibited rebooking of cancelled foreign exchange derivative contracts.",
    "RBI introduced 20% cash reserve requirement for large forex derivatives."
  ],
  "editors_take": "The Reserve Bank of India's measures to tighten regulations on foreign exchange derivatives and impose cash reserve requirements aim to enhance market discipline and alleviate pressure on the weakening rupee.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}