The Reserve Bank of India reversed its April 1 directive that had barred banks from offering non-deliverable forward contracts to clients and prohibited rebooking of cancelled foreign exchange derivative contracts. The rollback restores two specific operational permissions that banks had lost under the earlier circular. Non-deliverable forwards are offshore-settled currency contracts commonly used by corporates and financial institutions to hedge rupee exposure without actual currency delivery, making them a key instrument for cross-border risk management. Rebooking of cancelled FX derivative contracts allows counterparties to re-enter hedges after cancellation, preserving continuity in hedging programs. With both restrictions lifted, banks can again offer NDF products to clients and allow related-party trade rebooking, reducing friction in corporate treasury operations. The practical effect is restored access to hedging instruments for entities managing rupee currency risk, particularly those with cross-border exposures. Market participants will watch whether the RBI issues further clarification on eligibility criteria or documentation norms for these reinstated permissions.
India's Expenditure Finance Committee has cleared a Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0, up 64 percent from ISM 1.0's Rs 76,000 crore. The proposal now goes to the Cabinet, as two chip plants begin commercial output and a third, CG Semi, is set to open July 4, 2026.
The Supreme Court blocked Trump from firing Federal Reserve board member Lisa Cook, preserving the Fed's independence from presidential removal power. A separate ruling the same day gave Trump broader authority to dismiss leaders of other independent federal agencies.
The US Supreme Court has blocked President Trump's attempt to fire Federal Reserve governor Lisa Cook, who faced unproven mortgage fraud allegations. The ruling preserves Fed independence for now and keeps a politically charged removal case alive in the courts.
The US Supreme Court, splitting along ideological lines, has allowed the Trump administration to end Temporary Protected Status for Haitian and Syrian immigrants.
