Indian companies' activity in the non-deliverable forwards (NDF) market surged to over $7 billion on March 30, seven times the average. This surge was driven by a rush by banks' unwinding positions following regulatory curbs. With banks selling dollars in the domestic market and simultaneously buying them in NDF, the spread between the two created arbitrage opportunities. This increased NDF activity. The data indicates that the central bank's curbs on size of banks' onshore FX positions have not significantly impacted the rupee.