RBI tightens forex rules, raises daily CRR requirement to 99%

RBI lowered the threshold for taking positions in exchange-traded currency derivates involving rupee without establishing underlying exposure from $100 million to $5 million. It also raised daily minimum cash reserve ratio (CRR) to be maintained by banks to 99%, starting October 16. RBI tightened documentation requirements to prevent the same exposure from being hedged through multiple dealers.