Archive · 10 Oct 2026
SBI Research Urges RBI to Prioritise Rupee Stability Alongside Inflation
SBI Research says the rupee is facing pressure as the US dollar strengthens and global financial conditions become less predictable.
It wants the Reserve Bank of India to focus on keeping the currency steady as well as controlling inflation.
The report suggests exporters should usually bring their earnings into India within six months instead of around 15 months.
It also proposes other steps, including possibly raising interest rates and changing how the RBI manages short-term money in the banking system.
The report says these measures could help manage pressure on the rupee.
But higher interest rates can make borrowing more expensive for families and businesses.
That could slow spending and investment.
The report says policymakers must balance currency stability with the health of the wider economy.
SBI Research says global dollar strength, rate uncertainty and rising bond yields are adding pressure to emerging-market currencies.
The report recommends giving exchange-rate management greater priority alongside managing inflation expectations.
It proposes cutting the standard export-proceeds realisation timeline from around 15 months to six months, with case-by-case extensions.
Other recommendations include considering a 50-basis-point rate hike, temporarily widening the liquidity adjustment facility corridor and attracting longer-term capital.
The report warns that currency-support measures could raise borrowing costs and weigh on credit, consumption and investment.
- Who
- SBI Research made recommendations to the Reserve Bank of India and the government.
- What
- The report recommends giving rupee stability greater attention and proposes measures involving interest rates, liquidity, export proceeds and capital inflows.
- Where
- India, amid global financial market pressures.
- Why
- A stronger US dollar, uncertainty about US interest rates, rising bond yields and volatile capital flows are putting pressure on emerging-market currencies and foreign exchange management.
Prioritise currency stability
Limit costs to growth
Monetary tightening
Prioritise currency stability
SBI Research proposes considering a 50-basis-point rate hike to address persistent global financial pressures and support currency stability.
Limit costs to growth
Tighter monetary policy could raise borrowing costs for households and companies, potentially slowing credit demand, consumption and investment.
Exchange-rate management
Prioritise currency stability
The report argues that stronger exchange-rate management can help reduce rupee volatility and contain the inflationary effects of costlier imports.
Limit costs to growth
The report cautions that policy must contain external pressures without imposing excessive costs on domestic economic growth.
- Report
- SBI Research's Ecowrap
- Export proceeds timeline proposed
- Reduce the standard realisation period from around 15 months to six months, with case-by-case extensions.
- Possible rate increase
- A 50-basis-point hike
- Liquidity adjustment facility corridor
- Widen from its current 50 basis points, according to the report's recommendation.
- Other proposed measure
- Review tax and capital gains structures to attract long-term capital into Indian debt and equity markets.
- Potential cost of tightening
- Higher borrowing costs could slow credit demand, consumption and investment.