**Executive Summary**
The Reserve Bank of India (RBI) invites public comments on the draft Amendment Directions on Net Open Position (NOP) - Revised Instructions. These amendments modify the Risk Management and Inter-Bank Dealings and the Prudential Norms on Capital Adequacy Directions, 2025. Comments from Regulated Entities (REs), market participants, and interested parties are due by February 3, 2026.
**Key Points / Main Content**
* **Amendment Directions Released:** RBI has released draft Amendment Directions to modify existing instructions concerning Net Open Position (NOP) calculations.
* **Scope of Amendment Directions:**
* These amendments apply to several Regulated Entities, including:
* Commercial Banks
* Small Finance Banks
* Regional Rural Banks
* Local Area Banks
* Urban Co-operative Banks
* Rural Co-operative Banks
* All India Financial Institutions (AIFIs)
* Standalone Primary Dealers
* **Objective of Revisions:**
* To ensure greater alignment with the Basel Committee on Banking Supervision (BCBS) standards.
* To ensure consistent implementation of norms across Regulated Entities.
* **Proposed Revisions:**
* Doing away with separate calculation of offshore/onshore NOP.
* Inclusion of accumulated surplus of overseas operations in NOP (wherever applicable).
* Maintenance of forex risk capital charge on the actual NOP.
* Modifying the Shorthand method for calculation of NOP.
* Provision to exempt certain structural forex positions from NOP.
* **Public Comment Invitation:** The RBI is seeking comments on the draft Amendment Directions from REs, market participants, and interested parties.
* **Submission Deadline:** Comments must be submitted by February 3, 2026.
* **Submission Methods:**
* Via the link under the ‘Connect 2 Regulate’ section on the Reserve Bank's website.
* Alternatively, forwarded to The Chief General Manager, Market Risk Group, Department of Regulation, Central Office, Reserve Bank of India, 12th Floor, Shahid Bhagat Singh Marg, Fort Mumbai – 400 001.
* Via email with the subject line ‘Feedback on Net Open Position – Revised Instructions'.
**Impact Analysis**
**Regulated Entities (REs)**
* **Impact:** REs are subject to revised guidelines on NOP calculation and capital adequacy.
* **Action Required:** Review the draft Amendment Directions and provide comments/feedback to RBI by February 3, 2026.
**Market Participants**
* **Impact:** Market participants will be impacted by changes in how REs manage foreign exchange risk.
* **Action Required:** Review the draft Amendment Directions and provide comments/feedback to RBI by February 3, 2026.
**Other Interested Parties**
* **Impact:** May be impacted by how REs manage foreign exchange risk.
* **Action Required:** Review the draft Amendment Directions and provide comments/feedback to RBI by February 3, 2026.
Key Entities Referenced
FMRD Master Direction No. 1/2016-17 - Master Direction - Risk Management and Inter-Bank Dealings and the Prudential Norms on Capital Adequacy Directions, 2025: Original guidelines on Risk Management, Inter-Bank Dealings, and Capital Adequacy, applicable to Regulated Entities (REs), that are being revised.
Reserve Bank of India: The central bank of India, responsible for issuing the draft Amendment Directions.
Amendment Directions on Net Open Position: Draft Amendment Directions modifying existing instructions related to the computation of Net Open Position (NOP) and calculation of capital charge on foreign exchange risk.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह 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
January 14, 2026
RBI invites public comments on the draft Amendment Directions on Net Open
Position – Revised Instructions
Please refer to the FMRD Master Direction No. 1/2016-17 - Master Direction - Risk
Management and Inter-Bank Dealings and the Prudential Norms on Capital Adequacy
Directions, 2025 applicable to the different Regulated Entities (REs) which inter alia
specify the methodology for computation of Net Open Position and calculation of
capital charge on foreign exchange risk. Reserve Bank has released today the
following draft Amendment Directions which modify the aforementioned instructions.
(1) Reserve Bank of India (Commercial Banks - Prudential Norms on Capital
Adequacy) Second Amendment Directions, 2026
(2) Reserve Bank of India (Small Finance Banks - Prudential Norms on Capital
Adequacy) Second Amendment Directions, 2026
(3) Reserve Bank of India (Regional Rural Banks - Prudential Norms on Capital
Adequacy) Amendment Directions, 2026
(4) Reserve Bank of India (Local Area Banks - Prudential Norms on Capital
Adequacy) Amendment Directions, 2026
(5) Reserve Bank of India (Urban Co-operative Banks - Prudential Norms on
Capital Adequacy) Amendment Directions, 2026
(6) Reserve Bank of India (Rural Co-operative Banks - Prudential Norms on Capital
Adequacy) Amendment Directions, 2026
(7) Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential Norms
on Capital Adequacy) Second Amendment Directions, 2026
(8) Reserve Bank of India (Standalone Primary Dealers) Amendment Directions,
2026
The comments on the draft Amendment Directions are invited from the Regulated
Entities, market participants, and other interested parties till February 3, 2026. The
comments / feedback may be submitted through the link under the ‘Connect 2
Regulate’ Section available on the Reserve Bank’s website or may alternatively be
forwarded to
The Chief General Manager
Market Risk Group
Department of Regulation, Central Office
Reserve Bank of India, 12th Floor
Shahid Bhagat Singh Marg
Fort Mumbai – 400 001
Or
by email
With the subject line ‘Feedback on Net Open Position – Revised Instructions’2
Background and Objective
The extant guidelines on Net Open Position (NOP) are covered under the Master
Direction - Risk Management and Inter-Bank Dealings and the Prudential Norms on
Capital Adequacy Directions, 2025 applicable to the different REs. The Reserve Bank
has comprehensively reviewed these instructions to ensure (i) greater alignment with
the Basel Committee on Banking Supervision (BCBS) standards and (ii) consistent
implementation across REs. The proposed revisions include, inter alia, (a) doing away
with the separate calculation of offshore / onshore NOP (wherever applicable); (b)
inclusion of accumulated surplus of overseas operations in NOP (wherever
applicable); (c) maintenance of forex risk capital charge on the actual NOP; (d)
modifying the Shorthand method for calculation of NOP in alignment with Basel
guidelines, which treats open position in gold separately; and (e) provision to exempt
certain structural forex positions from NOP.
(Brij Raj)
Press Release: 2025-2026/1925 Chief General Manager