Reserve Bank of India (RBI) Governor Sanjay Malhotra called for Indian banks to enhance their participation in global foreign exchange markets during the 25th annual conference of the Fixed Income Money Market and Derivatives Association (FIMMDA) in Amsterdam. He noted that Indian banks currently engage primarily with offshore market-makers instead of end-users, which limits the potential for onshore rupee trading. To address this, Malhotra urged banks to develop into global market-makers. His comments follow the RBI's recent move to mitigate currency volatility by capping banks' net open rupee positions at $100 million daily, a measure aimed at reducing speculative trading and stabilizing the rupee. Malhotra also highlighted the need for fair treatment of all market participants and called for reforms to improve liquidity in India's government securities market, which, while liquid, still requires enhancements. He warned that global uncertainties, including geo-economic fragmentation, are impacting capital movement and reshaping supply chains, posing challenges for the financial system.