29/3/2026, 9:44:02 pm

Banks urge RBI to reconsider forex cap

Banks urge RBI to reconsider capping net open foreign exchange positions involving rupee at $100 million, saying it may cause significant losses and accelerate trade unwinding. Market estimates suggest $40 billion of dollar-long bets would be squared off, potentially leading to rupee appreciation, and banks propose a transition window or applying revised limit to incremental positions.