Currency Measures Temporary, Committed To Internationalisation Of Rupee In Long Term: RBI DG
April 23, 2026
RBI Deputy Governor T Rabi Sankar said recent rupee measures are temporary, reaffirming commitment to long-term internationalisation amid efforts to curb market volatility
The senior official, however, seemed non-committal about when the central bank would completely roll back the measures undertaken on March 30 and April 1 this year, after noticing excessive speculation in the currency market, which was creating an artificial scarcity for the US dollar.
It can be noted that earlier this week, the RBI partially rolled back a part of the April 1 measures on rupee derivatives, allowing authorised dealers to resume offering non-deliverable derivative contracts, involving INR to resident or non-resident users.
When asked about the timelines by when the USD 100 million cap on the net open positions will be lifted, Sankar said the RBI is committed to having one single global market for rupee-dollar, and also for internationalisation of the rupee over the long term.
"All that was done was to deal with a temporary event that created a large volatility in the market. Once that is taken care of, we should be back on track in what we do," the career central banker said.
"Our idea is that any user anywhere in the world who has an exposure to risk to the rupee should be able to do any product that is available." When asked if the RBI would take similar measures in the future, Sankar explained that the action taken over the last month was due to excessive speculation and not due to appreciation or depreciation in the domestic currency against the greenback.
In the future, whether the currency goes up or down will be dependent on market forces, which are driven by demand-supply dynamics, Sankar said, adding that the central bank comes in only when it sees excessive or disruptive volatility in the market.
To a question on any further relief measures being planned, given that the geopolitical tensions are continuing, Sankar said the RBI will always take steps that are necessary to ensure that it meets its goals, that markets function well, and to ensure that the economy functions well.
"If there are stresses at any point in the economy, as a regulator, as an entity responsible for market stabilisation, whatever we need to do, we will do that," he said, reminding everybody of the action taken during the Covid-19 pandemic.
It can be noted that earlier this week, the RBI partially rolled back a part of the April 1 measures on rupee derivatives, allowing authorised dealers to resume offering non-deliverable derivative contracts, involving INR to resident or non-resident users.
When asked about the timelines by when the USD 100 million cap on the net open positions will be lifted, Sankar said the RBI is committed to having one single global market for rupee-dollar, and also for internationalisation of the rupee over the long term.
"All that was done was to deal with a temporary event that created a large volatility in the market. Once that is taken care of, we should be back on track in what we do," the career central banker said.
"Our idea is that any user anywhere in the world who has an exposure to risk to the rupee should be able to do any product that is available." When asked if the RBI would take similar measures in the future, Sankar explained that the action taken over the last month was due to excessive speculation and not due to appreciation or depreciation in the domestic currency against the greenback.
In the future, whether the currency goes up or down will be dependent on market forces, which are driven by demand-supply dynamics, Sankar said, adding that the central bank comes in only when it sees excessive or disruptive volatility in the market.
To a question on any further relief measures being planned, given that the geopolitical tensions are continuing, Sankar said the RBI will always take steps that are necessary to ensure that it meets its goals, that markets function well, and to ensure that the economy functions well.
"If there are stresses at any point in the economy, as a regulator, as an entity responsible for market stabilisation, whatever we need to do, we will do that," he said, reminding everybody of the action taken during the Covid-19 pandemic.