Explained | RBI’s worries about pressure on rupee and measures to curb volatility in forex market
The Reserve Bank of India has introduced new regulatory measures to curb volatility in the foreign exchange market. These include stricter rules on derivative contract rebooking and reduced thresholds for hedging without underlying exposure.
Why it matters
These regulatory changes are critical for maintaining the stability of the Indian Rupee amidst fluctuating global oil prices and geopolitical tensions.
Story so far: In view of the evolving geopolitical conditions, fluctuations in oil prices and to ensure orderly functioning of the foreign exchange market, the Reserve Bank of India (RBI) on October 10, 2026, issued two circulars, announcing several regulatory measures.
Restrictions on rebooking of cancelled foreign exchange derivative contracts: as per this Authorised Dealers (ADs) will not permit users to rebook any foreign exchange derivative contract involving INR, whether deliverable or non-deliverable, which has been cancelled with any AD after the issuance of the directions. Rollover of foreign exchange derivative contracts on maturity will continue to be permitted, subject to compliance with the extant regulatory provisions.
Also covering this story
2 other newsrooms covered this event. We read each version separately.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in