The Reserve Bank of India (RBI), through A.P. (DIR Series) Circular No. 13 dated June 8, 2026, has provided regulatory relief to Authorised Dealer Category-I (AD Cat-I) banks in relation to their Net Open Position (NOP)-INR limits. In line with RBI’s newly introduced swap facilities for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs), banks are now permitted to exclude swap positions arising from these transactions while calculating compliance with NOP-INR position requirements. The relaxation is intended to facilitate participation in the special swap facilities announced by RBI without adversely impacting banks’ foreign exchange exposure limits. However, banks must continue to comply with the broader prudential framework prescribed under A.P. (DIR Series) Circular No. 24 dated March 27, 2026. Issued under the Foreign Exchange Management Act (FEMA), 1999, the circular seeks to support foreign currency inflows, enhance market liquidity, and ensure smooth implementation of RBI’s foreign exchange measures.
Reserve Bank of India
RBI/2026-27/101
A.P. (DIR Series) Circular No. 13 | Dated: June 8, 2026
To,
All Authorised Dealer Category-I Banks
Madam/Sir,
NOP-INR position of Authorised Dealer Category-I banks
Attention of Authorised Dealer Category (AD Cat)-I banks is invited to circulars FMOD.MAOG.No.S-56/01.06.016/2026-27 dated June 8, 2026, on ‘Swap Facility for FCNR (B) Deposits’ and FMOD.MAOG.No.S-57/01.06.016/2026-27 dated June 8, 2026, on ‘Swap Facility for External Commercial Borrowings and Overseas Foreign Currency Borrowings’.
2. AD Cat-I banks may exclude the swap positions arising out of FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings raised in terms of the aforesaid circulars while ensuring compliance with the provisions of the A.P. (DIR Series) Circular No. 24 dated March 27, 2026.
3. The directions contained in this circular have been issued under Sections 10(4), 11(1) and 11(2) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
