RBI caps banks’ net open rupee positions at $100 million
Banks must unwind excess FX exposure daily
Change
India’s RBI capped banks’ net open rupee positions in the onshore market at $100 million at the end of each business day effective April 10, 2026.
Why it matters
Banks cannot offset onshore exposure with offshore hedges, forcing trading desks to unwind positions and rebalance portfolios to meet the daily cap.
Implications
- — Banks must liquidate excess positions — trading flexibility reduced
- — Unwinding positions may trigger losses — balance sheet stress increases
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