RBI releases draft Directions on Foreign Exchange Dealings of Authorised Persons

The Reserve Bank of India (RBI) on Tuesday released the draft Directions on Foreign Exchange Dealings of Authorised Persons to among others ease reporting obligations and invited comments and feedback on the draft directions by March 10, 2026.

“The regulatory framework governing the facilities for Authorised Persons and inter-bank foreign exchange transactions contained in Part A (Section III) and Part C of the Master

Direction have been reviewed and refined to provide greater flexibility to Authorised Persons to deal in products and undertake foreign exchange transactions for hedging their exposures, balance sheet management and market-making as well as to ease reporting obligations,” the RBI said in the draft.

The format for reporting of net open position limits has also been updated, it said. 

The Reserve Bank has been refining the regulations governing the foreign exchange market based on evolving needs and market feedback.

As part of this endeavour, the regulations governing the facilities for Authorised Dealers (ADs) in the foreign exchange market have been reviewed to provide the ADs with greater flexibility with respect to foreign exchange products, risk management and platforms.

As announced in the Statement on Developmental and Regulatory Policies dated February 06, 2026, the draft directions in this regard are being issued for public consultation.