RBI Mandates USD 100 Million Daily Cap on Rupee Net Open Position
The Reserve Bank of India (RBI) on March 27, 2026 recently shared a circular (RBI/2025-26/252) directing Authorised Dealers to maintain their Net Open Position in Rupee (NOP-INR) within a limit of US$100 million at the close of each business day.
The RBI issued this direction under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42).
The Net Open Position (NOP) is a prescribed limit set by the Reserve Bank of India (RBI) to control the foreign exchange risk taken by authorised dealers. It shows the net exposure of a bank to fluctuations in the value of the Indian Rupee against foreign currencies.
RBI has told banks to reduce their dollar positions
Banks can now hold only up to $100 million in dollar-rupee exposure
Right now many banks are holding much larger dollar positions
They must cut this down by April 10
— RedboxGlobal India (@REDBOXINDIA) March 28, 2026
