March-end forward premia jumps as banks convert dollar for rupee

Forward rates for March and April have risen significantly because of a peculiar phenomenon of banks converting dollar holdings into rupees to sh­o­w higher rupee deposits bef­ore the financial year closes.
 
Banks sell the dollar in the market and get rupee liquidity. However, when the new fiscal starts, the same banks buy the dollar back and releases rupee liquidity into the market. 
 
These transactions happen through swaps, in which banks sell dollars on the spot market and buy dollars in the forwards in April. This then significantly pushes up forward premia for April. 
 
This year, the premium