The State Bank of India (SBI), the largest bank in India, is grappling with an estimated loss of ₹3 billion ($32 million) due to a regulatory crackdown on currency speculation. This ban has forced the bank to unwind approximately $5 billion in bets against the Indian rupee, which constitutes about 20% of its total exposure. The Reserve Bank of India (RBI) has implemented measures to stabilize the currency, including a directive that limits daily open positions in the onshore currency market to $100 million by April 10. The rupee has faced significant pressure this year, declining over 3% amid foreign sell-offs and increasing oil prices, which have widened India's trade deficit. Despite these challenges, analysts believe that SBI's substantial asset base of over $800 billion will allow it to absorb the losses without significant long-term impact. The expectation is that the rupee may strengthen as SBI and other banks exit their speculative positions.