Indian banks urge RBI to delay $100 million forex cap
Indian banks are urging the RBI to ease up on new foreign exchange rules set to kick in from April 10.
They're worried about $30 billion in rupee transactions that could put extra pressure on the currency and have asked for more time to adjust.
The main issue? The RBI now wants to limit how much currency risk banks can take each day, capping it at $100 million instead of the old rule that allowed up to 25% of a bank's capital.
Banks warn unwinding could cause losses
Banks say quickly unwinding their big positions could mean serious financial losses, especially with these changes hitting offshore trades where dollars are bought in India and sold abroad.
Since late February, the rupee has already dropped over 4% thanks to high oil prices and global tensions.
Market experts think the rupee will likely trade between 92.50 and 92.80 per dollar soon, so everyone's watching closely as this fiscal year wraps up Monday, with markets closed March 31.