The Reserve Bank of India has partially modified its June 8, 2026 circular on the NOP-INR position of Authorised Dealer Category-I banks. The change allows these banks to exclude positions arising from hedged transactions related to Foreign Currency Non-Resident Bank deposits, external commercial borrowings and overseas foreign currency borrowings raised under the June 8, 2026 swap facility circulars. The exclusion applies while banks continue to comply with the provisions of the March 27, 2026 circular and when computing net overnight open position under the Master Direction on Risk Management and Inter-Bank Dealings dated July 5, 2016, as amended. The directions were issued under Sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999.
Reserve Bank of India2026-06-23
Reserve Bank of India lets AD Category I banks exclude hedged FCNR B and external borrowing positions from NOP INR calculations
The Reserve Bank of India has eased NOP-INR treatment for AD Category-I banks by allowing them to exclude positions from hedged transactions linked to FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings raised under the June 8 swap facilities. Banks must still comply with the March 27, 2026 circular and the net overnight open position framework in the risk management master direction.