TIOL-DDT 1657 · Friday, 22 July 2011 · story 6 of 9

Facilitating Rupee Trade - Hedging Facilities for Non-resident Entities

IN order to facilitate greater use of Indian Rupee in trade transactions, RBI has decided to allow non-resident importers and exporters to hedge their currency risk in respect of exports from and imports to India, invoiced in Indian Rupees.

Necessary amendments to Notification No. FEMA.25/RB-2000 dated May 3, 2000 [Foreign Exchange Management (Foreign Exchange Derivatives Contracts) Regulations, 2000] are being notified separately.

RBI A.P. (DIR Series) Circular No.3., Dated: July 21, 2011