1.
The
Reserve Bank of India (RBI) has issued directions to Authorised Dealer
Category-I (AD Cat-I) banks regarding the treatment of swap positions arising
from specific foreign currency liabilities
2.
.Covered Facilities
o The relaxation applies to swap positions
arising from:
§ FCNR(B) deposits,
§ External Commercial Borrowings (ECBs), and
§ Overseas Foreign Currency Borrowings
(OFCBs).
3.
Exclusion
from Swap Position Calculations
o AD Cat-I banks may exclude swap positions
related to the above facilities while complying with regulatory requirements
under A.P. (DIR Series) Circular No. 24 dated March 27, 2026.
4.
Objective
o The measure supports the RBI’s special
swap facilities introduced to attract foreign currency inflows and enhance
foreign exchange liquidity.
5.
Compliance
Requirement
o Banks must continue to comply with all
other provisions of the March 27, 2026 circular, except for the permitted
exclusion of these specified swap positions.
6.
Legal
Authority
o The directions have been issued under
Sections 10(4), 11(1), and 11(2) of the Foreign
Exchange Management Act (FEMA), 1999.
7.
Other
Approvals Unaffected
o The circular does not override any
permissions or approvals that may be required under other applicable laws or
regulations.
[A.P. (DIR Series) Circular
No. 13 dated June 8, 2026]
NOP-INR
position of Authorised Dealer Category-I banks
Attention of Authorised
Dealer Category (AD Cat)-I banks is invited to circulars FMOD.MAOG.No.S-56/01.06.016/2026-27
dated June 8, 2026, on ‘Swap Facility for FCNR (B) Deposits’ and FMOD.MAOG.No.S-57/01.06.016/2026-27 dated June 8, 2026, on ‘Swap Facility for External
Commercial Borrowings and Overseas Foreign Currency Borrowings’.
AD Cat-I banks may exclude the swap
positions arising out of FCNR (B) deposits, External Commercial Borrowings and
Overseas Foreign Currency Borrowings raised in terms of the aforesaid circulars
while ensuring compliance with the provisions of the A.P. (DIR Series) Circular
No. 24 dated March 27, 2026.
The directions contained in this
circular have been issued under Sections 10(4), 11(1) and 11(2) of the FEMA,
1999 (42 of 1999) and are without prejudice to permissions / approvals, if any,
required under any other law.