New foreign-exchange rules in India have prompted confusion among banks, with several lenders suspending USD/INR forward quotes after broadly interpreting Reserve Bank of India guidance that a cash margin requirement applies to "all rupee derivative transactions." Foreign media citing seven bank sources said banks paused forward quotes amid concern the rule could be extended to interbank FX trading. A person familiar with RBI policy intent said the market had misread the guidance and the cash ma

New foreign-exchange rules in India have prompted confusion among banks, with several lenders suspending USD/INR forward quotes after broadly interpreting Reserve Bank of India guidance that a cash margin requirement applies to "all rupee derivative transactions." Foreign media citing seven bank sources said banks paused forward quotes amid concern the rule could be extended to interbank FX trading. A person familiar with RBI policy intent said the market had misread the guidance and the cash margin requirement was not intended to cover interbank trades.