Mumbai, May, 10: The Reserve Bank of India (RBI), the central bank of India, has asked Authorised Dealers (AD) to won’t exceed the Intra-day open position / daylight limit from the erstwhile Net Overnight Open Position Limit available to them.

RBI has fixed the intra-day open position / daylight limit of the AD at five times the Net Overnight Open Position Limit available to them or the existing Intra-day open position limit as approved by the Reserve Bank, whichever is higher, for positions involving Rupee as one of the currencies.

In terms of the above circular, Intra-day open position / daylight limit of AD should not exceed the erstwhile Net Overnight Open Position Limit available to them. It was further clarified through FEDAI Circular that restrictions placed on Intraday positions limits is only applicable for positions involving Rupee as one of the currencies.

The apex bank of country has decided to fix the intra-day open position / daylight limit of the AD at five times the Net Overnight Open Position Limit available to them or the existing Intra-day open position limit as approved by the Reserve Bank, whichever is higher, for positions involving Rupee as one of the currencies.

This move will help central bank of the country to decrease the volatile present in currency market. The regulator wants to ensure the supply of dollar to counter the appreciation in dollar.