07-April-2026
Banking
 
Banks seek RBI clarity on forex hedge curbs, warn rules may hit genuine trade flows amid delays
06-Apr-2026

Amid longer voyages, uncertainties, and delays in payments and cargo movements, banks want Reserve Bank of India (RBI) to clear the air as its last week's diktat to back the rupee could backfire on genuine trades. Bankers met over the weekend to discuss this, some sent feelers to RBI, and the issues would be formally raised by an industry body, two persons told ET. Corporates have been banned by RBI from cancelling and rebooking forward contracts. Why? Exporters who had sold dollars forward (i.e., at a future date), say, at 91 or 92 to protect earnings from exchange rate fluctuations, were cancelling those hedges to book new forwards as the rupee breached 94.

News Source:- https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-seek-rbi-clarity-on-forex-hedge-curbs-warn-rules-may-hit-genuine-trade-flows-amid-delays/articleshow/130045925.cms