RBI monetary policy: Fema rules under review to ease scope of hedging

The Reserve Bank of India (RBI) will review its guidelines under the Foreign Exchange Management Act (Fema), to ease the scope for hedging currency risk through derivative contracts. 

The proposed revisions would be issued for public comment by the end of September. 

“It (the exercise) is meant to reduce the administrative and documentation requirements,” said Deputy Governor Viral Acharya.

This was after RBI governor Urjit Patel told journalists the tariff war between America on the one hand and Iran, Russia and China on the other could spill into currency wars. In this background, the central bank wishes to recheck the regulations, to protect