The FINANCIAL — India's central bank has eased limits on currency trading positions for some banks after considering their applications for relaxation on a case-by-case basis, two bankers said Monday.
According to Borsa Italiana – London Stock Exchange Group, the treasury head of a private-sector bank, who declined to be named, said the Reserve Bank of India has eased limits on the so-called daylight positions as well as unhedged foreign currency positions that his bank can hold overnight.
A senior executive from another private-sector bank confirmed the development, saying that her bank had approached the RBI as it was facing difficulty in carrying out trades for clients due to the limits.
The treasury head of a third large bank said the central bank had only relaxed daylight position limits for his bank.
An RBI spokeswoman didn't immediately comment.
The RBI had placed limits on net open positions that banks can hold overnight after the rupee slumped to a record low of INR54.2925 to the U.S. dollar on Dec. 15.
Earlier, banks were allowed to set their own board-mandated trading limits, which had to be approved by the central bank.