NON-DELIVERABLE FORWARD (NDF) MARKET

The Reserve Bank of India (RBI) has decided to permit banks in India, which operate International Financial Services Centre Banking Units (IBUs), to participate in the non-deliverable forward (NDF) market with effect from June 1, 2020.


About:

  • NDFs are foreign exchange derivative instruments on non-convertible or restricted currencies traded over the counter (OTC) mainly at offshore centres outside the direct jurisdiction of the respective national authorities.

  • The RBI took the decision despite the recommendation by a task force set up by it against allowing banks in the NDF market. The task force submitted its report in July 2019.

  • The Task Force on Offshore Rupee Markets, set up by the RBI, had proposed that Indian banks should not be permitted to deal in the offshore rupee derivative market — or the NDF market — for the present as the downside of permitting them to deal in this market outweighs the advantages.

Source : Indian Express

Vignan IAS Academy imparts Best IAS coaching in Bangalore for Civil Services. VIA team of mentors (teachers), with long years of experience in teaching as well as expertise in our specific subject-matter expertise. Our team has been exposed to exclusive IAS coaching’s in Bangalore, has created value for those coaching institutes.

  • Facebook
  • Twitter
  • Pinterest
  • YouTube
  • LinkedIn
google-icon-png-9.png
whatsapp.png

ABOUT VIGNAN IAS

ALL COURSES

- Why Vignan IAS?

- About Us

- How to choose Best IAS

- Coaching in Bangalore?

- Key Features

9606576465

- Intensive IAS

- CSAT-Prelims

- Mains

- Public Admins Optional

- Economics Optional

HELPFUL LINKS

- Current Affairs

- Daily News Analysis

- Books

- UPSC Syllabus

- UPSC Notifications

- Eligibility Criteria

- Study Material

- How to Prepare?

Copy rights All rights reserved by Vignan IAS Academy