Indian cbank allows banks to trade in rate futures

MUMBAI, Oct 13 (Reuters) - The Reserve Bank of India on Monday said it has allowed banks to take trading positions in interest rate futures.

Earlier banks were allowed to transact in rate futures only for hedging their investments.

The change in rules will also be applicable to overseas branches of Indian banks, the central bank said in a notification posted on its website. (Reporting by Anurag Joshi; Editing by Ramya Venugopal)