RBI relaxes Position Limits for Domestic Participants and FPIs

The key relaxations are:

1. The limit for domestic entities and FPIs to take foreign currency positions in the USD-INR pair on ETCD market without having to establish the existence of any underlying exposure has been increased to USD 15 million per exchange. In addition, there will be an aggregate limit of USD 5 million equivalent per exchange for EUR-INR, GBP-INR and JPY-INR pairs.

2. The limit for domestic importers of goods and services to take hedging positions in ETCD markets has been increased from 50 per cent to 100 per cent of the higher of the (i) average of their last three years’ imports turnover or (ii) the previous year’s turnover.

3. Documentation and other administrative requirements for hedging on the ETCD markets have also been rationalised.

   Related Stories

   • India’s economic reform newsmakers — 2025
   • Fixed Income 2026: Navigating India's post-rate cut landscape
   • SGB 2017–18 Series XIII final exit today: Investors to earn nearly 5x return; Check price and deta...

The related circulars No. A.P. (DIR Series) No.90 dated March 31, 2015 and A.P. (DIR Series) No.91 dated March 31, 2015 with the above announcements have been published on Reserve Bank’s website today.

The Reserve Bank had, on February 3, 2015, announced the relaxations as part of its Sixth Bi-Monthly Monetary Policy Statement, 2014-15.

Alpana Killawala Principal Chief General Manager

Press Release : 2014-2015/2072