RBI Urged to Relax New FX Rules as $30 Billion Unwinding Looms

Lenders in India are urging the central bank to rethink new rules for foreign-exchange transactions designed to shore up the rupee, saying the measures would saddle them with large losses, according to people familiar with the matter.

In talks on Saturday, banks sought to delay an April 10 deadline for them to comply with the rules that would require a significant amount of positions to be closed, the people said, asking not to be named discussing private matters. They said unwinding at such a scale would trigger large losses on their books and also urged that the latest regulation apply only to new bets, the people said.