RBI clamps down on rupee speculation targeting corporate arbitrage after earlier bank curbs fell short

Banks can’t offer certain forwards, and firms can’t rebook

The Reserve Bank of India has escalated efforts to curb rupee speculation, shifting focus from earlier bank-focused measures to corporate arbitrage. New rules bar banks from offering rupee non-deliverable forwards and restrict companies from rebooking cancelled forward contracts, aimed at reducing currency volatility amid geopolitical uncertainties. The RBI says initial steps didn’t go far enough to contain the activity.