With the Middle East conflict continuing for more than a month, India’s central bank, the Reserve Bank of India (RBI), has activated a crisis plan to stabilise the Indian currency, the rupee. The measures will control the fall of the rupee, which has been one of the hardest-hit currencies in Asia. 

On 2nd April 2026, the RBI introduced multiple steps to support the rupee. 

Countries are actively deploying measures to counter inflation and currency depreciation and against equity market volatility.

On 27th March 2026, the RBI capped the net open rupee position of banks at $100 million, instead of allowing positions up to 25% of capital. Quickly after, banks were barred from offering Rupee non-deliverable forwards (NDFs) to both resident and non-resident clients.

Authorised dealers can no longer offer certain non-deliverable contracts involving the rupee, though deliverable FX contracts for hedging remain permitted. However, users cannot offset those positions with offshore trades. This has made the banks unwind nearly $30 billion in arbitrage trades.