RBI allows foreigners to access FX futures; eases norms for banks

MUMBAI (Reuters) - The Reserve Bank of India (RBI) has set a limit of $10 million on banks' proprietary positions in the exchange traded currency futures and also allowed foreign portfolio investors to hedge their currency risk without any underlying up to the same limit, the central bank said in separate releases on Friday.

In July last year, at the peak of the rupee crisis, the RBI had barred all banks from taking any proprietary positions in the currency futures market.

"An FPI (foreign portfolio investor) cannot take a short position beyond USD 10 million at any time and to take a long position beyond USD 10 million in any exchange, it will be required to have an underlying exposure," the release said.

(Reporting by Swati Bhat and Neha Dasgupta; Editing by Sunil Nair)