Indian Lenders Request Extension for FX Position Limits

Commercial lenders in India have formally requested the Reserve Bank of India to extend the compliance deadline for new foreign exchange position limits by three months. The banks warned that the current timeline could lead to a chaotic unwinding of market positions and significant financial losses. The RBI recently mandated that banks restrict their net open rupee positions in the onshore deliverable market to a maximum of $100 million by the end of each business day. This directive, scheduled to take effect on April 10, follows increased volatility in the local currency.