RBI Caps Offshore INR Positions at $100 Million

  • Blog|News|FEMA & Banking|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 30 March, 2026

Latest from Taxmann

Offshore INR Positions

RBI/2025-26/252 A.P. (DIR Series) Circular No. 24; Dated: 27.03.2026

1. Regulatory Background

As per the Master Direction dated July 5, 2016, the Reserve Bank of India (RBI) is empowered to prescribe limits on Net Open Position in INR (NOP-INR) for effective exchange rate management, depending on prevailing market conditions.

2. New Direction Issued by RBI

In line with this framework, the RBI has directed Authorised Dealers (ADs) to maintain their NOP-INR positions in the offshore deliverable market within a specified limit.

3. Prescribed Limit

  • ADs must ensure that their NOP-INR positions do not exceed US$ 100 million
  • This limit is to be maintained at the end of each business day

4. Applicability & Compliance Timeline

  • The direction applies to all Authorised Dealers participating in offshore deliverable markets
  • ADs are required to ensure compliance at the earliest, but no later than April 10, 2026

5. Key Takeaway

This move reflects RBI’s continued focus on prudential risk management and exchange rate stability by placing tighter controls on offshore INR exposures held by market participants.

Click Here To Read The Full Circular

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied