After reviewing evolving market conditions, the Reserve Bank of India (RBI) has come out with further measures aimed at authorised dealers (ADs) in response to the sharp depreciation of the rupee. The measures are effective immediately. The actions come days after the rupee breached the psychologically important Rs 95 to a US dollar mark in intra-day trade on March 30. 

Authorised dealers (ADs) -- banks authorised by RBI to deal in foreign exchange -- will not be able to offer non-deliverable derivative contracts involving the Indian rupee to resident or non-resident users. They may, however, continue to offer deliverable foreign exchange derivative contracts to users to meet their hedging requirements, provided that users do not undertake offsetting non-deliverable derivative positions. The ADs should not permit a user to rebook any foreign exchange derivative contract, whether deliverable or non-deliverable, which is cancelled after the date of issuance of these instructions.

For this purpose, the ADs may call for such information or documents from users as they deem necessary for complying with the requirements. They should not undertake any foreign exchange derivative contract with their related parties, it said, clarifying that 'related parties' shall have the same meaning as assigned to it under the Indian Accounting Standard (Ind AS) 24 'Related Party Disclosures or International Accounting Standard (IAS) 24' Related Party Disclosures or any other equivalent accounting standards.