MUMBAI, Oct 13 (Reuters) – India’s latest foreign-exchange curbs have sown confusion among bankers, with some taking a broad interpretation of the cash-margin requirement and holding back on quoting rupee forwards.
Seven bankers Reuters spoke to on Tuesday said they did not plan to quote dollar/rupee forwards, citing the central bank’s directive that the cash-margin requirement applies to all rupee derivative transactions. They were concerned that the mandate could potentially extend to interbank transactions.A person familiar with the central bank’s thinking said the interpretation was not correct, clarifying that the cash-margin requirement was not intended to cover interbank transactions.
The central bank did not immediately respond to an email seeking comment.
Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala
