Explained: How RBI’s safety net to protect falling rupee could mean Rs 4,000 crore shock for banks

Wait 5 sec.

The Reserve Bank of India has stepped in to halt the rupee's fall. This move forces banks to unwind dollar positions, potentially leading to a Rs 4,000 crore loss for the banking sector. Banks had profited from differences in dollar rates between local and offshore markets. The RBI's action aims to curb one-sided bets against the rupee.