The RBI has issued a circular to Authorised Dealer Category-I banks regarding open positions in line with previous directives. Banks must adhere to the provisions of the existing Master Directions on Risk Management and Inter-Bank Dealings.
Open Positions for Authorised Dealer Category-I Banks
The Reserve Bank of India (RBI) has directed all Authorised Dealer Category-I banks to refer to A.P. (DIR Series) Circular No. 13 dated June 8, 2026. This communication pertains to the open positions that AD Cat-I banks may maintain.
The RBI emphasized the significance of complying with the stipulations set forth in the Master Direction on Risk Management and Inter-Bank Dealings, initially dated July 5, 2016, which has undergone various amendments over time.
These guidelines are critical for ensuring robust management of foreign exchange positions by banks, which align with the regulatory framework aimed at maintaining financial stability and mitigating risks associated with currency fluctuations.
Practitioners must ensure their banking institutions are compliant with these requirements to avoid regulatory penalties and to maintain operational integrity.
Citations
- RBI Circular (2026) RBI/2026-27/153
