The Reserve Bank of India (RBI) has issued final Amendment Directions on Net Open Position (NOP), revising the framework for measuring foreign exchange risk and related capital requirements for regulated entities.

The revised guidelines introduce several key changes, including the removal of separate onshore and offshore NOP calculations (where applicable), inclusion of accumulated surplus from overseas operations in NOP, calculation of forex risk capital charges based on the actual NOP, alignment of the shorthand NOP calculation method with Basel norms by treating gold positions separately, and exemption of certain structural foreign exchange positions from NOP.

The final directions incorporate feedback received from stakeholders on the draft guidelines issued in January 2026 and apply to commercial banks, small finance banks, regional rural banks, co-operative banks, All India Financial Institutions, and standalone primary dealers.

The amendments aim to bring India's forex risk management framework in line with Basel Committee on Banking Supervision (BCBS) standards and ensure uniform implementation across regulated entities. The revised norms will come into effect from April 1, 2027.