The Reserve Bank of India (RBI) on June 08, 2026, has permitted Authorised Dealer Category-I (AD Cat-I) banks to exclude specific swap positions from their Net Overnight Open Position (NOP)-INR calculations.
The following has been stated:
• The exemption applies to swap positions arising from:
o Foreign Currency Non-Resident (Bank) [FCNR(B)] Deposits
o External Commercial Borrowings (ECBs)
o Overseas Foreign Currency Borrowings (OFCBs)
• These transactions must be undertaken under the RBI's special swap facilities announced on June 08, 2026.
• AD Cat-I banks can exclude these swap positions while computing their NOP-INR limits.
• Banks must continue to comply with the provisions of A.P. (DIR Series) Circular No. 24 dated March 27, 2026 regarding NOP management.
• The directions are issued under Sections 10(4), 11(1), and 11(2) of the Foreign Exchange Management Act (FEMA), 1999.
[RBI/2026-27/101]
