Summary: The Reserve Bank of India, through Circular RBI/2026-27/294 dated 19 October 2026, has issued the Reserve Bank of India (Commercial Banks – Miscellaneous) Second Amendment Directions, 2026. The amendment deletes Section C, titled “Limits for Non-Option Derivative Contracts”, of Chapter IV of the Reserve Bank of India (Commercial Banks – Miscellaneous) Directions, 2025. This section corresponds to paragraph 37 of the existing Directions. The instructions take effect immediately upon issuance, making the deletion operative from 19 October 2026.
The RBI has issued the amendment following a review and in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, together with other enabling provisions and laws. It records its satisfaction that issuing these instructions is necessary and expedient in the public interest. The operative change specified in the circular is the deletion of the identified section and paragraph; the supplied amendment does not prescribe a replacement provision, revised numerical limits or a transitional period. Accordingly, its stated effect should be understood with reference to the particular provision deleted, without treating it as an express removal of every other requirement that may govern derivative transactions. The circular bears reference DOR.MRG.REC.No.248/00-00-020/2026-27 and is signed by Sunil T S Nair, Chief General Manager.
Reserve Bank of India
RBI/2026-27/294
DOR.MRG.REC.No.248/00-00-020/2026-27 | Dated: October 19, 2026
Reserve Bank of India (Commercial Banks – Miscellaneous) Second Amendment Directions, 2026
Please refer to Section C on ‘Limits for Non-Option Derivative Contracts’ of Chapter IV of the Reserve Bank of India (Commercial Banks – Miscellaneous) Directions, 2025.
2. On a review, and in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (RBI) to issue instructions in this regard, the RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
3. (i) These instructions shall be called the Reserve Bank of India (Commercial Banks – Miscellaneous) Second Amendment Directions, 2026.
(ii) The amended instructions shall come into effect immediately upon issuance.
4. Section C on ‘Limits for Non-Option Derivative Contracts’ of Chapter IV of the Reserve Bank of India (Commercial Banks – Miscellaneous) Directions, 2025 (paragraph 37 of the Directions) stands deleted.
(Sunil T S Nair)
Chief General Manager
