EconomyTuesday, 31 March 2026·https://testbook.com/current-affairs/31-march-2026-daily-current-affairs
RBI caps banks’ net open position in INR at $100 million to curb forex volatility
The RBI ordered banks to keep their onshore deliverable NOP-INR within $100 million by April 10, 2026.
Key highlights
Direct fact
In March 2026, the Reserve Bank of India (RBI) directed all banks to cap their Net Open Position in Indian Rupees (NOP-INR) in the onshore deliverable market at $100 million by the end of each business day, with compliance due by April 10, 2026.
Key specifics
- New cap: $100 million per bank at the end of each business day.
- Compliance deadline: April 10, 2026 for all authorised foreign exchange dealers.
- Earlier rule: boards could approve limits up to 25% of the firm’s total capital.
- NOP-INR measures a bank’s exposure to exchange-rate fluctuations through assets and liabilities in Indian rupees.
- The move came amid a rupee fall of nearly 4% since late February 2026 and more than 10% in the financial year.
Exam lens
Economy and banking regulation MCQ: RBI, NOP-INR, $100 million cap, 25% of total capital, April 10, 2026. TNPSC may ask why the RBI uses such limits and what NOP-INR means.