Why is India’s rupee tanking, two words – fraud and liquidity. In fiscal 2018, the country’s banks registered losses attributed to frauds of about $4.37-billion, according to the Reserve Bank of India. The losses were almost double from the last fiscal year. And, India’s public sector banks had over 85% of the fraud cases through they loaned about 65% of the total funds. Liquidity is a major problem. As a result, getting or opening an LC in India is increasing difficult.