RBI Intervenes in Forex Market and Proposes Disclosure of Offshore Derivative Data

The Reserve Bank of India (RBI) has intervened in the foreign exchange market to support the rupee amid pressures from rising oil prices and geopolitical tensions, conducting two three-year $10 billion rupee swaps this year. Meanwhile, RBI proposes a rule requiring foreign banks in India to disclose offshore non-deliverable forward (NDF) derivative data to enhance market oversight. However, many multinational banks resist, citing challenges in accessing and sharing offshore transaction details due to jurisdictional and operational complexities.