RBI Sets US$100 Million NOP-INR Limit for Authorised Dealers

India RBI Notifications

Published March 27th, 2026

Detected March 28th, 2026

Summary

The Reserve Bank of India has issued a circular setting a limit of US$100 million for the Net Open Position in Rupees (NOP-INR) for Authorised Dealers. This new limit is intended for exchange rate management and must be maintained at the end of each business day.

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What changed

The Reserve Bank of India (RBI) has established a new limit for Authorised Dealers' Net Open Position in Rupees (NOP-INR) in the onshore deliverable market. Effective no later than April 10, 2026, Authorised Dealers must ensure their NOP-INR positions do not exceed US$100 million at the close of each business day. This directive amends the Master Direction on Risk Management and Inter-Bank Dealings and is issued under the FEMA, 1999.

Authorised Dealers must take immediate steps to comply with this new position limit by the specified deadline. Failure to adhere to the US$100 million NOP-INR limit could result in regulatory action, although specific penalties are not detailed in this circular. Compliance officers should review their current open position management strategies and update them to align with the new daily limit.

What to do next

Ensure NOP-INR positions are maintained within US$100 million at the end of each business day.
Update internal risk management systems and procedures to comply with the new limit by April 10, 2026.

Source document (simplified)

Notifications

March 27, 2026

To,
All Authorised Persons

Madam/Sir,

NOP-INR position of Authorised Dealers

Attention of Authorised Dealers is invited to the Master Direction - Risk Management and Inter-Bank Dealings dated July 05, 2016, as amended from time to time. In terms of paragraph A (ii) (a) of Annex I of the Master Direction, the Reserve Bank may prescribe limits for open positions involving Rupee (NOP-INR) for exchange rate management, depending on market conditions.

Accordingly, it has now been decided that Authorised Dealers shall ensure that their NOP-INR positions in the onshore deliverable market shall be maintained within US$ 100 million at the end of each business day. Authorised Dealers shall ensure compliance with the above at the earliest but no later than April 10, 2026.
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 | | RBI/2025-26/252
A.P. (DIR Series) Circular No. 24

March 27, 2026

To,
All Authorised Persons

Madam/Sir,

NOP-INR position of Authorised Dealers

Accordingly, it has now been decided that Authorised Dealers shall ensure that their NOP-INR positions in the onshore deliverable market shall be maintained within US$ 100 million at the end of each business day. Authorised Dealers shall ensure compliance with the above at the earliest but no later than April 10, 2026.
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 |
| RBI/2025-26/252
A.P. (DIR Series) Circular No. 24

March 27, 2026

To,
All Authorised Persons

Madam/Sir,

NOP-INR position of Authorised Dealers

Accordingly, it has now been decided that Authorised Dealers shall ensure that their NOP-INR positions in the onshore deliverable market shall be maintained within US$ 100 million at the end of each business day. Authorised Dealers shall ensure compliance with the above at the earliest but no later than April 10, 2026.
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 | |