India's RBI caps banks' rupee net open positions at $100 million
Change
India's RBI capped authorised dealers' net open positions in the onshore deliverable rupee market at $100 million at the end of each business day, effective April 10, 2026.
Why it matters
Maintaining large overnight dollar‑long exposures will be restricted, requiring trading desks to unwind or hedge positions before market close to avoid regulatory breaches. Risk and liquidity managers must revise intraday controls and monitoring to meet the new end‑of‑day constraint.
Implications
- • Authorised dealer banks' foreign exchange trading desks must reduce or hedge rupee‑dollar exposures during the trading day to ensure end‑of‑day positions do not breach the RBI limit, or face supervisory action.
- • Treasury risk managers at authorised dealer banks must implement daily pre‑close reconciliations and lower internal position limits to detect and prevent breaches, or be subject to regulatory compliance measures.
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Source
Topics
Regulatory Actions Markets Banking Regulation Financial Services