RBI accuses banks of worsening rupee slump, $30 billion positions unwound

Business Apr 12, 2026

The Reserve Bank of India (RBI) recently called out banks for making the rupee's slump even worse during the Middle East tensions.
At a Paris conference, Deputy Governor T Rabi Sankar said some market players took advantage of arbitrage between local and overseas markets, which put extra pressure on dollar supplies.
The RBI quickly capped how much currency betting banks could do and banned certain offshore trades, leading banks to unwind about $30 billion in risky positions by April 10.

Rupee rebounds nearly 2% tops Asia

Thanks to these steps, the rupee has bounced back nearly 2% and is now Asia's top-performing currency this year.
The RBI says these restrictions are temporary but were needed to quell speculation against the rupee during a rocky period.