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RBI caps rupee exposure banks scramble and NDF premium jumps sharply
Economy
Published on 24 April 2026
A $100 million limit triggers hedge unwind and losses loom
RBI’s new $100 million cap on banks’ net open rupee exposure pushed traders to unwind overseas hedges on Monday. The scramble widened the spread between local and offshore rupee rates, sending the NDF premium higher. Treasury officials warn banks could face sizable mark-to-market losses as they rush to meet the tighter rule.
- RBI set a $100 million cap on net open rupee exposure
- Banks unwound overseas hedges to comply quickly
- Local and offshore rupee rates diverged, lifting NDF premium
- Mark-to-market losses may rise amid rushed adjustments
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times