The Reserve Bank of India (RBI) on October 10, 2026, issued a notification regarding the Risk Management and Inter-Bank Dealings.
The following has been stated: -
•The Reserve Bank of India (RBI) revised the Master Direction on Risk Management and Inter-Bank Dealings to strengthen regulations governing foreign exchange derivative contracts involving the Indian Rupee (INR).
•Authorised Dealers are prohibited from permitting rebooking of cancelled INR-related derivative contracts, while rollovers on maturity remain permitted subject to applicable conditions.
•The threshold for positions without establishing underlying exposure has been reduced from USD 100 million to USD 5 million under the specified facilities.
•Authorised Dealers must obtain an undertaking from users confirming that the same underlying exposure has not been hedged with another dealer and retain relevant documents for at least two years.
•The directions are effective immediately under the Foreign Exchange Management Act, 1999, and the Reserve Bank of India Act, 1934.
The detailed notification is given in the document below.
[Notification No.: RBI/2026-27/291 A.P. (DIR Series) Circular No. 25]
