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Mumbai, Oct. 10 Resident individuals can now book forward contracts based on self-declaration, without producing underlying documents up to a limit of $1,00,000.

A recent notification from the Reserve Bank of India said, “In order to enable resident individuals to manage and hedge their foreign exchange exposures arising out of actual or anticipated remittances, both inward and outward, it has been decided to permit them to book forward contracts without production of underlying documents up to a limit of $1,00,000, based on self declaration.”

The contracts booked under this facility would be on a deliverable basis. However, in case of mismatches in cash flows or other exigencies, the contracts can be cancelled and re-booked, the notification said. The contracts can be booked for a tenor of one year and the notional value of the outstanding contracts should not exceed $1,00,000 at any time.

The notification further enables the Small and Medium Enterprises (SMEs) having direct or indirect exposures to foreign exchange risk to book, cancel, rebook or roll over forward contracts. “

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