What changed
RBI circular A.P. (DIR Series) Circular No. 13 dated June 8, 2026 allows AD Cat-I banks to exclude swap positions arising from FCNR(B) deposits, External Commercial Borrowings, and Overseas Foreign Currency Borrowings from their NOP-INR calculations. This exclusion applies only to swaps raised under the referenced circulars (FMOD.MAOG.No.S-56 and S-57 dated June 8, 2026) and must comply with the provisions of A.P. (DIR Series) Circular No. 24 dated March 27, 2026.
What it means for you
Banks can now manage their net open position in INR more flexibly by not counting these specific swap positions, potentially freeing up capital or reducing hedging costs. This aligns with RBI's efforts to encourage foreign currency inflows through FCNR(B) and ECB routes, supporting rupee stability.
What you must do
- Update internal NOP-INR calculation systems to exclude swap positions from FCNR(B) deposits, ECBs, and overseas foreign currency borrowings raised under the June 8, 2026 circulars.
- Ensure compliance with A.P. (DIR Series) Circular No. 24 dated March 27, 2026 when applying this exclusion.
- Train treasury and compliance teams on the new exclusion rules and document all eligible swap transactions.
Who it affects
Authorised Dealer Category-I banks, Treasury departments handling forex and swap transactions, Compliance teams monitoring NOP-INR limits
Which swap positions are excluded from NOP-INR under this circular?
Swap positions arising from FCNR(B) deposits, External Commercial Borrowings, and Overseas Foreign Currency Borrowings raised under the circulars dated June 8, 2026 are excluded.
Does this circular override any previous NOP-INR rules?
No, it provides an exclusion for specific swap positions while requiring compliance with the provisions of A.P. (DIR Series) Circular No. 24 dated March 27, 2026.