New Delhi, March 31 -- The Reserve Bank of India's recent move to tighten forex exposure norms for banks could lead to near-term earnings pressure, even as the Street expects some regulatory forbearance, according to a report by Jefferies.

The brokerage noted that "in a surprise move, RBI has capped banks' net open position (NOP) in onshore forex market to USD 100m vs. board-driven limit within 25% of capital," a step seen as a response to "sharp depreciation of INR & wider spread between offshore (NDF) & onshore mkt."

While the measure could support the rupee, the report warned that forced unwinding of positions may have adverse financial implications for lenders. "Unwinding of positions (by 10Apr) may lead to MTM losses in 4Q as posit...