The Reserve Bank of India (RBI), on June 23, 2026, issued directions regarding the computation of open positions by Authorised Dealer Category-I (AD Cat-I) Banks, partially modifying its earlier circular dated June 8, 2026 concerning NOP-INR positions.
Under the revised framework, AD Cat-I banks have been permitted to exclude positions arising from hedged transactions related to Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs) raised under the RBI's swap facilities announced on June 8, 2026. This exclusion is applicable while computing the net overnight open position under the Master Direction – Risk Management and Inter-Bank Dealings, 2016, subject to continued compliance with the provisions of A.P. (DIR Series) Circular No. 24 dated March 27, 2026.
The circular aims to facilitate implementation of the special swap facilities introduced by RBI while ensuring that the associated hedged exposures do not adversely impact banks' regulatory open position limits. The directions have been issued under Sections 10(4), 11(1), and 11(2) of the Foreign Exchange Management Act, 1999 (FEMA) and take effect immediately.
[A.P. (DIR Series) Circular No. 16 | RBI/2026-27/153]
