Speaking to reporters after delivering a speech on the completion of Clearing Corp of India Ltd’s (CCIL) 25 years, Sankar said the RBI is committed to its long term goals of internationalsation of the currency and also to have one single dollar/rupee market in India.
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“The commitment that we have to two things, to having one single global market for the dollar/rupee stands (and) the commitment to the internationalization of the rupee stands. They are there for the long term. All that was done was to deal with a temporary event that created a large volatility in the market. Once that is taken care of, we should be back on track in what we do,” Sankar said when asked about RBI’s measures on the rupee.
On Monday, the RBI withdrew its April 1 circular that had barred banks and other authorised forex dealers from offering non-deliverable forward (NDF) contracts to clients. It also rolled back the ban on lenders and their customers from rebooking any foreign exchange derivative contract cancelled after that date.
Earlier on March 27, RBI had limited the lenders’ net open rupee positions in the NDF market to $100 million. These curbs were imposed to arrest the plunge in the rupee, which lost the most in 14 years through a volatile FY26 to end up at the bottom of the currency leader board in Asia.
The $100 million limit for banks’ net open positions remains.
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Sankar said the RBI will ensure that any currency user anywhere in the world can use any product that is available to hedge their exposure in rupee.
Talking about CCIL Sankar said having proven its mettle in clearing and settlement the company should now look to spread internationally.
“CCIL has started with the foreign currency settlement in IFSC (Gift City). As IFSC business picks up, this will also become important. So this is an area that I expect CCIL to make headway over the next 25 years. I also expect CCIL o be the entity that will continuously solve the technology problem…. I always recognize CCIL not as much as a financial infrastructure institution but as a technology institution. So on the technology field, I would expect that they would be the ones who would be guiding the absorption of these fast moving technologies in the financial markets,” Sankar said.