
India reopens 32 airports after ceasefire with Pakistan
May 12 (Reuters) - India said on Monday that it has reopened 32 airports that were shut during clashes with neighbour Pakistan, after a ceasefire over the weekend.
The 32 airports are now available for civil aircraft operations with immediate effect, the Airports Authority of India said in a statement.
Pakistan's airport authority fully reopened its airspace on Saturday.
India's top airlines, IndiGo (INGL.NS), opens new tab, said it will progressively commence operations on previously closed routes.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
an hour ago
- Reuters
Interbank traders turn focus to dollar-rupee forwards as spot treads water
MUMBAI, June 12 (Reuters) - India's FX market traders have increased activity in the dollar-rupee forwards market as spot market price action continues to be rangebound on two-sided client flows and the lack of firm cues. The rupee has hovered in the 85.30 to 86.02 range against the U.S. dollar over June so far with its 1-month realised volatility declining to 4.5%, the lowest in about six weeks. Dollar-rupee forward premiums, meanwhile, have witnessed sharper moves, sparked by the Reserve Bank of India's outsized rate cut last week and changes in expectations of U.S. rate cuts. The 1-year dollar-rupee implied yield fell to its lowest in nearly one year earlier this month while the 1-month forward premium has fallen about 4 paisa to its lowest level since November. The fall in dollar-rupee forward premiums leaves the rupee vulnerable to further depreciation by reducing the currency's "carry trade" appeal and diminishing the incentive for exporters to hedge receivables, analysts said. Speculative activity has picked up on forward premiums as markets are "largely playing the range (on spot USD/INR)," a trader at a large private bank said. To be sure, large moves in global foreign exchange markets could spur the dollar/rupee to break out of its prevailing range, said Apurva Swarup, vice president at Shinhan Bank India. If the dollar index breaks below the 98 level, that could unlock room for rupee appreciation from prevailing levels, Swarup said. On Thursday, the rupee was nearly flat against the U.S. dollar at 85.5125 as of 11:00 a.m. IST. Asian currencies were mostly stronger with the offshore Chinese yuan rising 0.2% as the latest trade truce between Washington and Beijing raised hopes that the world's two largest economies could avoid escalations in their tariff row.


Reuters
2 hours ago
- Reuters
India to tighten remittance rules, bar offshore time deposits, sources say
MUMBAI, June 12 (Reuters) - India's central bank plans to tighten rules for overseas remittances by resident Indians, barring them from holding foreign currency deposits with lock-in periods, two government sources said. The Reserve Bank of India (RBI) will amend regulations to prevent overseas transfers from being used to park money in time deposits or other interest-bearing accounts abroad, one of the sources said. "This is akin to passive wealth shifting, which is a red flag for the RBI in a still-controlled capital regime," the first source familiar with the thinking of the central bank said. The proposed changes reflect India's cautious stance on a rise in outward remittances and full convertibility of the rupee, as authorities strive to safeguard foreign exchange reserves and manage currency volatility, the sources said. Overseas investments by individuals fall under the central bank's Liberalised Remittance Scheme (LRS) — which allows resident Indians to remit up to $250,000 in a single year — for purposes ranging from foreign education, travel, equity and debt investments to medical treatments. While discussions with the government are ongoing, the RBI aims to ensure such deposits cannot be made even under alternate names, the second source said. Both sources declined to be identified due to the confidentiality of the talks. The finance ministry and the RBI did not respond to emailed requests for comment. The move is part of a comprehensive review of the legal framework governing the scheme to simplify the regulations, a priority highlighted by the central bank in its annual report. RBI data showed that deposits under outward remittances by resident individuals rose sharply to $173.2 million in March from $51.62 million in February. Outward remittances typically spike in March as it allows residents to maximise their annual limits and optimise taxes, making it the busiest month under LRS but the RBI is concerned that a portion of this may be getting passively parked. For financial year 2024/25, total annual outward remittances under the scheme dipped but remained high at nearly $30 billion compared with $31 billion a year ago. The sources did not disclose the amount currently held in foreign currency deposit accounts, but said the move is "preventative". India's outward remittances under the scheme have steadily increased, particularly as fintech platforms and private banks have made global investing easier for retail investors. "The move addresses a growing misuse of the scheme as a vehicle for passive capital export," the second source said. "It also aligns the scheme more closely with India's calibrated approach to capital account convertibility." India has remained cautious on allowing unrestricted outflows, partly to preserve its foreign exchange reserves and manage currency volatility. The revised rules will not affect permissible foreign investments in equities, mutual funds or property under the LRS, the second source said.


Reuters
2 hours ago
- Reuters
India's Paytm slumps after government says reports of UPI transaction fees false
June 12 (Reuters) - Shares of digital payments firm Paytm ( opens new tab slumped as much as 10% on Thursday after India's finance ministry said, opens new tab that reports about the introduction of fees on the popular unified payments interface (UPI) transactions were false and baseless. The shares posted their sharpest intraday fall since February 2024, before coming off lows to trade down 8%. India's benchmark Nifty 50 (.NSEI), opens new tab was trading 0.2% lower. In India, merchants pay fees to banks or payment service providers, such as Paytm, for transactions. There is no fees on UPI payments. The delay or non-introduction of the fees is "sentiment negative for Paytm", brokerage UBS said, adding that the firm's adjusted core profits could decline more than 10% in fiscal years 2026 and 2027 if increased incentives are absent.