RBI bans non-deliverable INR derivatives

Authorised dealers may still offer deliverable FX derivative contracts.

India has banned authorised dealers from offering non-deliverable derivative contracts involving the Indian rupiah (INR) to resident and non-resident users.

The new instructions took into effect on 1 April 2026, said Dimple Bhandia, chief general manager at the Reserve Bank of India (RBI).

Authorised dealers are not allowed to offer non-deliverable derivative contracts involving the Indian rupiah (INR) to resident and non-resident users.

They may, however, may continue to offer deliverable foreign exchange derivative contracts to meet hedging requirements, provided that the user does not undertake offsetting non-deliverable derivative positions.

Authorised dealers are also now not allowed to permit a user to rebook any foreign exchange derivative contract involving the INR, whether deliverable or non-deliverable.

The dealers are also not allowed to undertake any foreign exchange derivative contract involving INR with their related parties.