MUMBAI (Reuters) - Some relaxation in limits on net open foreign exchange positions has been given to a few banks, H.R. Khan, a deputy governor at the Reserve Bank of India (RBI), said on Monday.
Banks have to approach the RBI for seeking the relaxation, he said.
The sharp fall in the rupee against the dollar last year prompted the RBI to impose restrictions on speculative trading by reducing the net overnight open position limit of banks.
But banks that had large net open positions have been finding it difficult to meet requirements on proprietary trades within the narrow limit set by the RBI, dealers said.
