RBI Eases Up on Rupee Rules: Banks Get a Little Flexibility

The Reserve Bank of India decided to give banks a little wiggle room by easing some rules on rupee-linked non-deliverable forwards. This change, happening now that the foreign-exchange market is looking more stable, allows banks to cancel and roll over certain contracts, but they still can't do all foreign-exchange trades with related parties. The rupee is under some pressure, but this helps banks manage things better.