# Banks seek RBI forex clarity amid operational hurdles

> Banks demand RBI guidance on new forex rules to avoid customer cost disputes.
- Title: Banks seek RBI forex clarity amid operational hurdles · mint
- Summary: Banks demand RBI guidance on new forex rules to avoid customer cost disputes. Banks request RBI clarification on operational aspects of forex curbs to…
- Keywords: rbi, banking sector, forex curbs, foreign exchange derivatives, ferr, cash reserve, customer costs, operational challenges, news, india, Banks, seek
- Source: mint — https://livemint.com/industry/banking/rbi-new-forex-curbs-impact-on-banks-11791801119753.html
- Author: Subhana Shaikh
- Published: 2026-10-12T15:48:49+00:00
- Read time: 1 min
- Topics: rbi, banking sector, forex curbs, foreign exchange derivatives, ferr, cash reserve, customer costs, operational challenges, news, india
## Banks approach RBI for forex rule clarity
Banks have approached the Reserve Bank of India seeking operational guidance on new forex curbs to curb speculative activity and support the rupee.
## New forex rules require 20% cash FERR
Under the new rules, authorised dealer banks must maintain a cash FERR with the RBI equivalent to 20% of the rupee value of each foreign exchange derivative contract with notional value exceeding $2 million.
## Banks flag operational challenges
Banks seek clarity on calculating notional value for complex options strategies and whether the $5 million threshold applies to imports or exports.
## Customer cost uncertainty
Banks are unsure whether they can charge customers for the reserve requirement based on transaction duration or incorporate costs into pricing.
## RBI's other measures
The RBI banned rebooking cancelled forex derivative contracts and opened a special window for oil marketing companies to meet dollar requirements.
## Economist warns of limited effectiveness
An economist noted the measures may provide near-term relief but effectiveness will be limited unless underlying balance of payments vulnerabilities are addressed.
## Rupee gains 1% amid uncertainty
The rupee gained 1% on Monday to 95.5938 per dollar, marking its biggest single-day gain in more than eight months.
## Key takeaway

Banks request RBI clarification on operational aspects of forex curbs to resolve customer cost issues.