The Reserve Bank of India (RBI) introduced a package of rupee defense measures over the weekend, effective October 12, 2026. It will open a special window to directly provide foreign exchange to three state-owned refiners through designated banks, completely bypassing the spot market. This move will shift daily foreign exchange purchase demand of $250 million to $400 million directly to the central bank's balance sheet. Concurrently, the RBI reinstated derivative control measures first used during the April crisis, drastically reducing the cap on foreign exchange derivative positions that can be established without prior proof of underlying exposure from $100 million to $5 million, a 95% cut. It also imposed a 20% cash margin deposit requirement for foreign exchange hedging contracts exceeding $2 million.

Goldman Sachs emerging markets strategists Rishi Radia and Lu Sun noted in a report that while these measures might lead to a 1% to 2% appreciation of the rupee in the short term, they do not address the fundamental issue of insufficient dollar inflows. The structural pressures on the rupee remain, and the pace of central bank reserve depletion could accelerate. Goldman Sachs estimates the three refiners' annual dollar demand to be approximately $120 billion.