RBI allows banks to trade in forex outside market hours

New Delhi: The Reserve Bank of India (RBI) on Monday said it has permitted Category-I banks to offer foreign exchange prices to users at all times, out of their Indian books, either by a domestic sales team or through their overseas branches.

Dealers hailed the move as a step in the right direction to help traders hedge their bets on the domestic front.

"Transactions beyond onshore market hours. Transactions with persons resident outside India, through their foreign branches and subsidiaries may also be undertaken beyond onshore market hours," the RBI said in a release.

The central bank said the decision came as it accepted the recommendation of the task force on the offshore rupee market.