Banks To Get Relief As RBI Simplifies Forex Risk And NOP Calculations, Effective April 2027
New Delhi, June 25 -- The Reserve Bank of India (RBI) on Wednesday issued final amendment directions revising the framework for computing net open position (NOP) and capital charges for foreign exchange risk across banks and financial institutions.
The directions, which come into effect on April 1, 2027, bring India's framework in closer alignment with Basel Committee on Banking Supervision standards.
Under the revised rules, banks will no longer be required to separately calculate onshore and offshore foreign exchange positions. All open positions from both onshore and offshore operations will instead be captured under a single, unified NOP calculation.
Structural Positions Can Be Excluded
Banks may now exclude certain structural for...
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