Amendment Directions on Net Open Position · 2026-2027/529
RBI press-release 2026-2027/529 · 24 Jun 2026
Official title
RBI issues Amendment Directions on ‘Net Open Position – Revised Instructions’
Summary
Check the official recordWhat changed
The Reserve Bank of India issues Amendment Directions to modify instructions for Net Open Position and capital charge for forex risk. These directions remove the separate calculation of offshore and onshore Net Open Position. They include accumulated surplus of overseas operations in the Net Open Position. Entities must maintain forex risk capital charge on the actual Net Open Position. The directions modify the Shorthand method for calculation to align with Basel guidelines. This method treats open position in gold separately. The directions provide an exemption for certain structural forex positions. These changes apply to commercial banks, small finance banks, local area banks, regional rural banks, urban co-operative banks, rural co-operative banks, all India financial institutions, and standalone primary dealers. The instructions take effect on April 1, 2027.
What you must do
- Regulated entities must calculate Net Open Position and maintain forex risk capital charge according to the amended instructions.
Key dates
Document text
June 24, 2026
RBI issues Amendment Directions on ‘Net Open Position – Revised Instructions’
The Reserve Bank of India had issued draft Amendment Directions on ‘Net Open Position – Revised Instructions’ on January 14, 2026, seeking inputs from Regulated Entities (REs) and other stakeholders till February 3, 2026. The draft Amendment Directions proposed to modify the instructions related to Net Open Position (NOP) and capital charge for forex risk. The proposed revisions include, inter alia, (i) doing away with the separate calculation of offshore / onshore NOP (wherever applicable); (ii) inclusion of accumulated surplus of overseas operations in NOP (wherever applicable); (iii) maintenance of forex risk capital charge on the actual NOP; (iv) modifying the Shorthand method for calculation of NOP in alignment with Basel guidelines, which treats open position in gold separately; and (v) provision to exempt certain structural forex positions from NOP.
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Feedback received on the draft instructions has been examined and consequent modifications have been suitably incorporated in the final Amendment Directions. Statement on the feedback received on the draft instructions is provided in the Annex.
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Accordingly, the Reserve Bank of India has today issued the following Amendment Directions to amend the extant instructions relating to computation of NOP.
i. Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Tenth Amendment Directions, 2026
ii. Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026
iii. Reserve Bank of India (Local Area Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026
iv. Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
v. Reserve Bank of India (Urban Co-operative Banks - Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026
vi. Reserve Bank of India (Rural Co-operative Banks - Prudential Norms on Capital Adequacy) Amendment Directions, 2026
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
0वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
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vii. Reserve Bank of India (All India Financial Institutions - Prudential Norms on Capital Adequacy) Fourth Amendment Directions, 2026
viii. Reserve Bank of India (Standalone Primary Dealers) Second Amendment Directions, 2026
- The objective of these Amendment Directions is to ensure greater alignment with the Basel Committee on Banking Supervision (BCBS) standards and consistent implementation of instructions across REs. These instructions will come into effect from April 1, 2027.
(Brij Raj)
Press Release: 2026-2027/529 Chief General Manager
Source details
- Source
- Reserve Bank of India
- Type
- press-release
- Published by source
- 24 Jun 2026
- Document number
- 2026-2027/529
- Issuing division
- Department of Communication
- Effective date
- 01 Apr 2027
- Coverage area
- banking