No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/248 · issued 28 Oct 2010 · ~1 min read
Quick answerRBI permits AD Category-I banks meeting prudential norms to trade currency options on recognized exchanges for themselves and clients. Other scheduled commercial banks can only participate as clients.
What changed
RBI allowed AD Category-I commercial banks that meet minimum prudential requirements to become trading and clearing members of exchange traded currency options on recognized stock exchanges. These banks can trade on their own account and for clients. Other scheduled commercial banks are restricted to client-only participation.
What it means for you
This expands hedging and trading opportunities for banks with stronger risk management frameworks. AD Category-I banks can now offer currency options to clients, potentially increasing fee income. Smaller banks without full membership must rely on larger banks for access, limiting their direct market role.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Verify your bank's AD Category-I status and compliance with prudential requirements under para 6(ii) of the referenced circular.
If eligible, apply to become a trading and clearing member on recognized stock exchanges for currency options.
Ensure systems are in place to manage client and proprietary positions in exchange traded currency options.
For non-AD Category-I banks, restrict participation to client-only basis and update internal policies accordingly.
Who it affects
AD Category-I scheduled commercial banks, Other scheduled commercial banks (excluding RRBs and LABs), Treasury and risk management departments, Clients seeking currency option hedging
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 03:59 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Which banks can become trading and clearing members for currency options?
Only AD Category-I commercial banks that meet the minimum prudential requirements specified in the Foreign Exchange Department circular can become members.
Can all scheduled commercial banks trade currency options for clients?
No. Only AD Category-I banks meeting prudential norms can trade for themselves and clients. Other scheduled commercial banks can only participate as clients.
What is the effective date of this permission?
The circular was issued on October 28, 2010, and was effective from that date.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1599: DBOD.No.BP.BC.51/21.06.101/2010-11 — "Introduction of Exchange Traded Currency Options - Permitting Banks to Participate in Currency Options on Recognized Sto”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/248
DBOD.No.BP.BC.51 / 21.06.101 / 2010-11
October 28, 2010
The Chairman and Managing Directors /
Chief Executive Officers of
All Scheduled Commercial Banks
(excluding RRBs and LABs)
Dear Sir,
Introduction of Exchange Traded Currency Options –
Permitting Banks to Participate in Currency Options
on Recognized Stock / New Exchanges
Please refer to RBI/2010-11/147 A.P. (DIR Series) Circular No. 05 dated July 30, 2010 containing guidelines on Trading of Currency Options on Recognised Stock / New Exchanges issued by Foreign Exchange Department (copy enclosed). In this connection, we advise as under:
AD Category - I commercial banks which fulfill the minimum prudential requirements under para 6(ii) of the Foreign Exchange Department circular referred to above, are hereby permitted to become trading and clearing members of the exchange traded currency options market of the recognized stock exchanges, on their own account and on behalf of their clients.
All other scheduled commercial banks are permitted to participate in the exchange traded currency options market only as clients.
Yours faithfully,
(B. Mahapatra)
Chief General Manager-In-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/248 · issued 28 Oct 2010. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6060&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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