The Reserve Bank of India has been watching the inter-bank transactions between 9.00 a.m. - 10.00 a.m. this morning. According to market information, there were few transactions of small value, while the price was being moved sharply higher by some banks. This indicates that the inter-bank activity this morning, despite RBI's repeated reminders seems to be speculative in nature. RBI has instructed banks to maintain square position for the day. If necessary, RBI will intervene directly in the market. All genuine market participants would do well to take this into account.