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RBI proposes easing forex transaction norms
Business Standard
|February 18, 2026
Draft directions allow dealers to trade on offshore electronic trading platforms
The Reserve Bank of India (RBI) has proposed allowing authorised dealers — commercial banks and primary dealers — to undertake foreign exchange and currency interest rate derivative transactions on electronic trading platforms (ETPs) located outside India, subject to defined regulatory safeguards, according to draft directions on Foreign Exchange Dealings of Authorised Persons released on Tuesday.
Under the draft framework, such offshore platforms must be located in jurisdictions that are members of the Financial Action Task Force and regulated by authorities affiliated with the Committee on Payments and Market Infrastructures or the International Organization of Securities Commissions. For trades involving the rupee, authorised dealers may transact only with nonresidents, and the offshore ETP operator will be required to publicly disseminate transaction data. The RBI has invited comments from market participants and other stakeholders by March 10.
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