The Reserve Bank should use foreign exchange reserves to prop up the rupee hit by the ongoing West Asia crisis, suggested a research report by SBI on Monday. ADVERTISEMENTThe research report from the State Bank of India's economic research department said India has adequate foreign exchange reserves of more than 10 months of imports. This should allow better visibility on genuine foreign exchange demand and supply dynamics and in measuring the efficacy of various countermeasures initiated by the regulator to curb unwarranted volatility, it added. Indian banks, both public and private, are generally long onshore and short offshore, while foreign banks exhibit a contra trend, it added. Through its circular dated March 27, 2026, the RBI capped the Net Open Position (NOP-INR) for banks at USD 100 million, with compliance required by April 10.

Source: The Telegraph March 30, 2026 19:23 UTC