RBI allows standalone primary dealers to trade in rupee NDF market

Mumbai, Sep 22, 2025

RBI has allowed standalone primary dealers to participate in rupee non-deliverable derivative contracts, widening access beyond AD Cat-I banks and IFSC Banking Units

The Reserve Bank of India (RBI) on Monday permitted standalone primary dealers (SPDs) to participate in non-deliverable derivative contracts (NDDCs) involving the Indian rupee, the central bank said in a notification.

Earlier, only Authorised Dealer Category-I (AD Cat-I) banks and International Financial Services Centre (IFSC) Banking Units were allowed to transact in such instruments with users, other AD Cat-I banks, and overseas banks. With the latest amendment to the Master Direction on Risk Management and Inter-Bank Dealings, SPDs will now also be eligible to offer NDDCs to both residents and non-residents. The changes take effect immediately.

“Authorised Dealer Category-I (AD Cat-I) banks in India operating an International Financial Services Centre (IFSC) Banking Unit (IBU) have been permitted under the Master Direction to transact in non-deliverable derivative contracts (NDDCs) involving the rupee with users, other AD Cat-I banks operating an IBU and banks overseas. On a review, it has been decided that standalone primary dealers (SPDs) authorised as Authorised Dealer Category–III (AD Cat-III) shall also be eligible to transact in NDDCs involving the rupee,” the RBI said in the notification.

[The Business Standard]