New Delhi, Oct. 12 -- Banks have urged the Reserve Bank of India (RBI) to ease its recently announced requirement for a 20 per cent cash deposit on certain foreign exchange (FX) derivatives and remove the transaction threshold above which the rule applies, according to four people familiar with the discussions.

Lenders have approached the central bank through the Foreign Exchange Dealers' Association of India (FEDAI), seeking the removal of the requirement for banks to maintain a 20 per cent cash deposit with the RBI against FX derivatives used to hedge current-account exposures, the people said, Reuters reported.

The RBI announced the measures on Saturday to curb corporate demand for forward dollars, which has added pressure on the rup...