The Reserve Bank of India (RBI) on Thursday allowed banks to be trading and clearing members of exchange-traded currency options subject to fulfilling of conditions related to net worth, capital adequacy ratio, and net profit, among others.
"All other scheduled commercial banks are permitted to participate in the exchange-traded currency options market only as clients," the Reserve Bank of India said in a release.
The National Stock Exchange (USE) and the United Stock Exchange (USE) will go live with trading in currency options in the dollar-rupee pair from Friday.