Here is what RBI has announced,

1. The RBI is taking the PSU oil companies’ dollar demand directly onto its own book. From Oct-12, the RBI will supply the full daily dollar requirement of IOC, HPCL & BPCL via designated banks. Basically - these large, regular dollar buyers do not have to come into the market everyday & push up demand for dollars.

2. Large USD-buying hedges will now cost banks more. For certain INR derivative trades above $2 million, banks must keep 20% of the Rupee value in cash with the RBI as a reserve. That makes these trades more expensive.

3. The amount you can trade without proving you actually have an underlying FX need has been slashed. The limit has gone from $100 million to just $5 million. This applies both to OTC derivatives & exchange-traded currency derivatives.

4. You can’t cancel a Rupee FX trade & then simply put the same trade back on again ! Rollovers at maturity are still allowed. Basically meant to curb repeated trading around the same exposure.

5. You now have to certify that you haven’t hedged the same exposure somewhere else. Bascially the RBI is trying to stop the same $ requirement being used to justify multiple hedges.