EconomyTuesday, 31 March 2026·The Hindu
RBI caps banks’ net open position in rupees at $100 million to curb forex volatility
RBI ordered banks to keep their net open position in Indian rupees within $100 million by April 10, 2026.
Key highlights
Direct fact
In March 2026, the Reserve Bank of India capped banks’ net open position in Indian rupees at $100 million per business day, with compliance required by April 10, 2026.
Key specifics
- NOP-INR means the net open position a bank holds in Indian rupees.
- The new cap applies to the onshore deliverable market and is set at $100 million.
- Earlier, authorized dealers could set board-approved limits up to 25% of the firm’s total capital.
- The directive was issued to all authorized foreign exchange dealers.
- The move came amid a rupee depreciation of more than 10% in the current financial year, the worst since 2011–2012.
Exam lens
RBI and banking regulation question, NOP-INR, $100 million cap, 25% capital-linked limit, April 10 2026 — TNPSC may ask definition, old rule, and why the RBI tightened controls.