Topic 3: DEVELOPMENT OF ONSHORE INR-NDDC
According to RBI, Indian banks that run International Financial Services 
Centre (IFSC)Banking Units (IBUs) can sell rupee NDDCs (non-deliverable 
foreign exchange derivative contracts) in the onshore market. This would 
help in removing market arbitrage between local and international 
markets. The Reserve Bank of India (RBI) has lifted a major roadblock for 
investments in the International Financial Services Centre (IFSC) at GIFT 
City, Gujarat, through the Liberalised Remittance Scheme (LRS) route. 
They are allowed to open a foreign currency account (FCA) in IFSC. Until 
now, any funds lying idle in FCA for up to 15 days had to be repatriated to 
the domestic rupee account. This measure will deepen the forex market in 
India and provide enhanced flexibility to residents in meeting their hedging 
requirements. 
The World Bank's estimate that $630 billion in remittances were transmitted to low- and middle-income countries in 2022. India received remittances of a record $100 billion in 2022, which is increased by 12% annually.
               
            The World Bank's estimate that $630 billion in remittances were transmitted to low- and middle-income countries in 2022. India received remittances of a record $100 billion in 2022, which is increased by 12% annually.

