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The Reserve (RBI) on Monday mentioned choose banks in India can provide foreign exchange charges to Indian purchasers past the inter-bank market hours, which now run from 9am to 5pm. In impact, this opens up the foreign exchange market in India around the clock, permitting Indians to hedge their international change dangers at any time of the day. This may also make the offshore foreign money markets in Dubai and Singapore much less enticing for Indian buyers, market gamers mentioned.
“It has been determined to simply accept the advice of the duty pressure on offshore rupee market to allow authorised sellers category-I banks to supply international change costs to customers always, out of their Indian books, both by a home gross sales group or by their abroad branches,” the RBI mentioned in a notification.
“Transactions with individuals resident outdoors India, by their international branches and subsidiaries may be undertaken past onshore market hours,” it mentioned.
The choice to permit foreign exchange market on a 24×7 foundation is critical, particularly for purchasers to handle in a single day foreign money danger as they will now hedge past native market hours, mentioned a market supply.
