Axis Bank Limited announced that it has dealt with its first onshore INR non-deliverable derivative trade with a South-based domestic corporate client.
Axis Bank pioneer in executing such a transaction, following RBI’s latest guideline issue.
Earlier on June 6, 2023, RBI guidelines allowed banks to offer resident clients onshore Non-Deliverable Derivative Contracts in Indian Rupee (INR). These contracts will be settled in INR cash.
According to Mr. Neeraj Gambhir, Group Executive & Head of Treasury, Markets & Wholesale Banking Products at Axis Bank, 'Axis Bank has utilized this opportunity to reinforce our commitment to innovation and pioneering customer-centric solutions. We aim to provide INR NDDCs to our domestic clients, ensuring that we stay at the forefront of the industry.
He added, “These guidelines introduced by the regulator have further liberalized the domestic foreign exchange market and is a major step towards onshore hedging activity. By permitting eligible resident entities to utilize Non-Deliverable contracts, they are now equipped with greater flexibility in managing their currency risk.'
At around 10.31 AM, Axis Bank was trading 0.46% lower at Rs 972.30 per piece, against the previous close of Rs 976.75 on NSE.
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