A new 20% cash reserve rule for forex derivatives means banks now need to park money with the RBI for big contracts. Result? Hedging could cost 1.3–1.5% more. Importers, especially those locking in long-term dollar deals, might rethink their strategy; or pay up. Even banks are scrambling to figure out how to split the cost with clients. Meanwhile, oil companies got a special waiver to buy dollars directly from RBI, keeping their demand off the open market. The bigger story? It’s not just about currency; it’s about controlling speculative bets and tightening liquidity. Some say this could drain ₹450–500 billion from the banking system if companies back off from forward contracts. One small rule, big ripple effects.