Aug. 14, 2019

The Task Force on Offshore Rupee Markets has submitted its report to the Governor of Reserve Bank of India (RBI).


  • Background: The Task Force was set up by the Reserve Bank of India (RBI) in February 2019.

  • Chairman: Usha Thorat, former Deputy Governor, RBI.

  • Mandate: To examine the issues relating to the offshore Rupee markets in depth and recommend appropriate policy measures.

Key recommendations of the Task Force are:

  • To extend onshore market hours to improve access of overseas users.

  • To permit Indian banks to freely offer prices to global clients around the clock.

  • To enable Rupee derivatives (settled in foreign currency), to be traded in the International Financial Services Centers (IFSC) in India, to begin with on exchanges in the IFSC.

  • To allow users to undertake forex transactions up to USD 100 million in OTC currency derivative market without the need to establish underlying exposure.

  • To facilitate non-residents to hedge their foreign exchange exposure onshore by:
    • Establishing a central clearing and settlement mechanism for non-resident transactions in the onshore market;

    • Implementing margin requirement for non-centrally cleared OTC derivatives and allowing Indian banks to post margins abroad;

    • Aligning the tax treatment of foreign exchange derivatives with that in major international centres; and

    • Centralising the KYC requirements across financial markets with uniform documentation requirement.