CIRCULAR NO. RBI/2020-21/98 A. P. (DIR SERIES) CIRCULAR NO. 10, Dated 16.02.2021
The Reserve Bank of India (RBI) has allowed AD Cat-I banks to post and collect margin in India, on their own account or on behalf of their customers, for a permitted derivative contract entered into with a person resident outside India in the form of: i. Indian currency, freely convertible foreign currency iii. Debt securities in Govt. iv. Rupee bonds issued by persons resident in India.
In addition, AD Cat-I banks are also allowed to maintain a separate account in the name of persons resident outside India for the purpose of posting and collecting cash margin in India, and transactions incidental thereto.