Ban On Re-Booking Forward Contracts By Importers Lifted

The Reserve Bank of India (RBI) today lifted the four-year-old ban on companies re-booking cancelled forward transactions for imports and non-trade transactions. The relaxation takes effect from April 1. The central bank has, however, capped the amount available for re-booking under the liberalised scheme at $100 million a year per company.

The ban on rebooking of forward contracts was imposed in 1998 in the wake of the east Asian crisis. RBI governor Bimal Jalan took the ostensibly