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NOP-INR Exclusion for FCNR(B) and ECB Swaps

Current · Source: Reserve Bank of India · RBI/2026-27/101 · issued 08 Jun 2026 · ~1 min read
Quick answerAD Cat-I banks can now exclude swap positions from FCNR(B) deposits, ECBs, and overseas foreign currency borrowings when calculating their NOP-INR, as per A.P. (DIR Series) Circular No. 13 dated June 8, 2026, referencing swap facility circulars of the same date.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore, Rohan, is happy to see the new rule allowing AD Cat-I banks to exclude swap positions from FCNR(B) deposits, ECBs, and overseas foreign currency borrowings. With this change, Rohan's bank can now manage its net open position in INR more flexibly, which means they can free up capital or reduce hedging costs. This will help Rohan's bank to better manage its foreign currency inflows and support rupee stability.

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

Who it affects

Authorised Dealer Category-I banks, Treasury departments handling forex and swap transactions, Compliance teams monitoring NOP-INR limits

❓ Common questions

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.

📜 Read the original circular — full text as issued by RBI
RBI/2026-27/101 A.P. (DIR Series) Circular No. 13 June 8, 2026 To, All Authorised Dealer Category-I Banks Madam/Sir, NOP-INR position of Authorised Dealer Category-I banks Attention of Authorised Dealer Category (AD Cat)-I banks is invited to circulars FMOD.MAOG.No.S-56/01.06.016/2026-27 dated June 8, 2026 , on ‘Swap Facility for FCNR (B) Deposits’ and FMOD.MAOG.No.S-57/01.06.016/2026-27 dated June 8, 2026 , on ‘Swap Facility for External Commercial Borrowings and Overseas Foreign Currency Borrowings’. 2. AD Cat-I banks may exclude the swap positions arising out of FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings raised in terms of the aforesaid circulars while ensuring compliance with the provisions of the A.P. (DIR Series) Circular No. 24 dated March 27, 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
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/101 · issued 08 Jun 2026. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • 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.
📜 Compliance
  • 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.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (Authorised Dealer Category-I banks, Treasury departments handling forex and swap transactions, Compliance teams monitoring NOP-INR limits), your first concrete step on “NOP-INR Exclusion for FCNR(B) and ECB Swaps” is: “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.” (RBI issued this 08 Jun 2026).

  1. Circular: RBI/2026-27/101 -- NOP-INR Exclusion for FCNR(B) and ECB Swaps
  2. Issued: 08 Jun 2026
  3. Action required: 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.
  4. Action required: Ensure compliance with A.P. (DIR Series) Circular No. 24 dated March 27, 2026 when applying this exclusion.
  5. Action required: Train treasury and compliance teams on the new exclusion rules and document all eligible swap transactions.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13470&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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