The Reserve Bank of India, through Circular No. 24 dated March 27, 2026, directed Authorised Dealers to maintain their Net Open Position in INR (NOP-INR) within a limit of USD 100 million in the onshore deliverable market at the end of each business day. This measure, issued under the Foreign Exchange Management Act, 1999, aims to strengthen exchange rate risk management and ensure market stability. The directive modifies existing guidelines under the Master Direction on Risk Management and Inter-Bank Dealings, allowing RBI to prescribe limits based on market conditions. Authorised Dealers must comply with the revised cap by April 10, 2026. The circular underscores RBI’s regulatory oversight in controlling currency exposure and mitigating systemic risks, while clarifying that compliance does not override other legal or regulatory approvals required under applicable laws.
Reserve Bank of India
RBI/2025-26/252
A.P. (DIR Series) Circular No. 24
March 27, 2026
To,
All Authorised Persons
Madam/Sir,
NOP-INR position of Authorised Dealers
Attention of Authorised Dealers is invited to the Master Direction – Risk Management and Inter-Bank Dealings dated July 05, 2016, as amended from time to time. In terms of paragraph A (ii) (a) of Annex I of the Master Direction, the Reserve Bank may prescribe limits for open positions involving Rupee (NOP-INR) for exchange rate management, depending on market conditions.
2. Accordingly, it has now been decided that Authorised Dealers shall ensure that their NOP-INR positions in the onshore deliverable market shall be maintained within US$ 100 million at the end of each business day. Authorised Dealers shall ensure compliance with the above at the earliest but no later than April 10, 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
