RBI Caps Offshore INR Positions at $100 Million

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.