RBI likely to bring back ‘exotic currency derivatives,’ says report

Top RBI officials have held multiple meetings with bankers to discuss ways to allow these products along with safeguards, the report said.

“There is the mixed reaction among bankers. Some are excited by the possibility of extra margins from the sale of exotic instruments while others who took the hit and were dragged to court are apprehensive… particularly, the compliance guys. But everyone is surprised by RBI’s plan to open up the market,” a senior banker who attended the meeting was quoted as saying in the report.