Indian banks are seeking RBI relief and clarity on the latest rupee-defence measures, with the rupee near 95.75 per dollar. When lenders are publicly asking what the rules actually are, the defence is

What happened: Lenders approached the RBI through a forex industry body seeking removal of a mandate requiring banks to make a 20% cash deposit with the RBI for FX derivatives used to hedge current-account exposures. Key numbers: 20% cash deposit requirement; $2 million threshold above which the deposit applies; rupee Why it matters: Banks warn the $2 million threshold could push companies to split hedges into smaller lots, which bankers say would be hard to track. Lenders also seek clarity on whether the 20% deposit applies to hedges against interest payments on foreign-currency loans.

Lenders approached the RBI through a forex industry body seeking removal of a mandate requiring banks to make a 20% cash deposit with the RBI for FX derivatives used to hedge current-account exposures.

Banks warn the $2 million threshold could push companies to split hedges into smaller lots, which bankers say would be hard to track. Lenders also seek clarity on whether the 20% deposit applies to hedges against interest payments on foreign-currency loans.