RBI Restricts INR NDDCs for Non-Residents to Hedging and Extends Risk Reserve to Dealers’ Own Hedges
RBI A.P. (DIR Series) Circular No. 27 of 12 October 2026 restricts INR non-deliverable derivative contracts offered to non-resident users to hedging purposes. It also requires authorised dealers to hold a 20% Foreign Exchange Risk Reserve on specified contracts entered into to hedge their own currency exposures.
Source: Reserve Bank of India · RBI/2026-27/293; A.P. (DIR Series) Circular No. 27