Bank Nifty Crashes 4% as RBI Curbs Forex Speculation; PNB, Yes Bank Lead Losers

• Bank Nifty declined nearly 4% after RBI directed banks to cap net open rupee positions at $100 million by April 10.
• All 14 constituents of the Bank Nifty index settled in the red, with PNB and Yes Bank being top laggards.
• The directive aims to curb forex speculation, leading to unwinding of arbitrage positions and dollar selling by banks.
• The rupee strengthened in both spot and forward markets as banks sold dollars to comply with the new limits.
• Bankers have requested more time from RBI, citing potential losses from rapid unwinding of positions.