This follows an announcement made in the Bi-Monthly Monetary Policy in February. The limit for domestic entities and Foreign Portfolio Investors to take foreign currency positions in the USD-INR pair on ETCD market has been increased to USD 15 million per exchange, the RBI said late on Tuesday evening.

Additionally, there will be an aggregate limit of USD 5 million equivalent per exchange for EUR-INR, GBP-INR and JPY-INR pairs, it said.
The limit for domestic importers of goods and services to take hedging positions in ETCD markets has been doubled to 100 percent of the higher of the average of their last three years' imports turnover or the previous year's turnover.

Documentation and other administrative requirements for hedging on the ETCD markets have also been rationalised, the RBI said.
It added that non-resident Indians may be allowed to participate in the ETCD markets in future based on this experience.

Latest News  from Business News Desk