Indian banks are scrambling to unwind arbitrage trades between rupee non-deliverable forwards (NDFs) and onshore markets, as the deadline for meeting new onshore end-of-day position limits set by the Reserve Bank of India fast approaches.
The RBI has given banks until April 10 to comply with a $100 million cap on net open positions in the onshore market, a move aimed at curbing speculative long dollar positions weighing on the currency.
Dealers say that even this week, with just days until the
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