FEMA mandates the Reserve Bank to maintain orderliness in the currency markets, the society disapproves of  BIS central bankers’ speeches  7  heightened volatility and economists warn of its adverse consequences.
In this backdrop, our approach has been guided by two-if I can use the word- axioms: Anyone anywhere in the world with an exposure to the Rupee should be able to enter into a derivative transaction to hedge the currency risk, and the transaction should be in the on-shore market. Beyond that, we have been endeavouring to expand the set of derivative transactions.