Mumbai, May 28 (KNN) Making double the amount of forward contracts that importers can book, RBI has increased the amount to 50 per cent of their average three years import turnover, or previous years actual import turnover, whichever is higher. The earlier limit for such contracts was 25 per cent.

The RBI yesterday said, “On a review of the evolving market conditions and with a view to providing importers with greater flexibility in hedging facility, it has been decided to allow importers to book forward contracts, under the past performance route, up to 50 per cent of the eligible limit.”

“Importers, who have already booked contracts up to previous limit of 25 per cent in the current financial year, shall be eligible for difference arising out of the enhanced limits. All other operational guidelines, terms and conditions shall apply mutatis mutandis,” it added. (KNN/SD)