How to trade in Indian currency – News
Trade in Indian rupees, foreign exchange and other foreign exchange instruments have been suspended on January 11 and the Reserve Bank of India (RBI) has extended the deadline to December 31.
However, the RBI has warned of further action against those who violate the moratorium on foreign exchange.
On January 12, the Reserve Board has instructed banks to keep the foreign exchange in rupees at the level of Rs.500.
But the RBI had earlier said that the ban on foreign currency trading should be lifted in the next few days.
This ban has been imposed by the Reserve Government in the wake of the rupee’s sharp decline against the US dollar, which has plunged from US$1.30 to US$0.25 since January 12.
The RBI has already stopped foreign exchange transactions by banks and brokers of the Rupee for three days in order to check the spread between the rupees and the US dollars.
The ban on trade in foreign currency is part of a broader directive that the Reserve Council will take into account in future policy decisions.
The Reserve Bank also asked banks to withdraw all cash in their possession and deposit them in safe deposit boxes and withdraw their money from the RBI account in their own names.
For more on foreign currencies, watch: It has been a long time since foreign exchange was banned.
But this time the Reserve is taking a hard line against foreign exchange traders.
In the meantime, the bank has told people to keep their money at their residence addresses.
“We have issued instructions to all banks to ensure that cash is deposited in bank safe deposit bags and withdrawals are made from the accounts of all clients.
Bank deposits should not be made through ATMs or cheques and withdrawals should be made only by direct debits from the bank account,” the RBI said in a statement.
At the same time, the RBI also said that any bank or broker which did not follow the instructions given by the RBI should be punished with an administrative penalty.
The RBI has also asked the RBI to ensure the security of bank deposits.
The Reserve has also restricted the amount of rupee that banks can deposit in their accounts at Rs.1,000 and Rs.2,000.
However, it has said that banks should not limit the number of rupees that they can deposit as it would hurt the economy.
The government is also imposing a ban on the import of all goods that contain foreign currency.