RBI Partially Rolls Back Forex Curbs, Allows Hedge Rebooking While Retaining Key Limits

The Reserve Bank of India has partially rolled back recent forex restrictions introduced earlier in April to stabilize the rupee. Banks can now offer offshore forex quotes again, and companies are allowed to rebook cancelled hedges—bringing some relief to market participants. However, key safeguards remain in place, including limits on bank positions and restrictions on certain derivative transactions involving related parties. The move comes as the rupee shows signs of recovery after recent volatility, indicating a calibrated approach by the central bank to balance stability and market flexibility.