{"id":"f-80ae245e0c-47369282-e5e3-576d-841b-923f07ca2cc9","title":"RBI proposes changes to banks' forex positions","description":"","timestamp":1768466118,"category":"business","headline":"RBI proposes changes to banks' forex positions","modifiedHeadline":"RBI Plans Forex Rule Changes for Banks","subCategories":["scid_2c4a86f2"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"85","fcSummary":"The reserve bank of india proposed changes to rules governing banks’ foreign exchange positions, aligning with basel committee standards. Revisions include eliminating separate offshore/onshore net open position calculation and including surplus from overseas operations.","summary":"RBI considers forex position changes for banks, potentially impacting trading & risk management. Banks brace for new regulations.","ctaUrl":"https://trends.glance.com/newz/news/IN/en/news18/f-80ae245e0c-47369282-e5e3-576d-841b-923f07ca2cc9","sourceUrl":"https://www.news18.com/agency-feeds/rbi-proposes-changes-to-banks-forex-positions-9831477.html","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/4DNXjTSfEcS0.webp","content":"

Mumbai, Jan 15 (PTI) The Reserve Bank on Wednesday proposed changes to rules governing banks’ foreign exchange positions.

The amendments to net open position (NOP) were made following a comprehensive review

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of the existing instructions, according to an official statement.

NOP refers to the difference between banks’ total foreign currency assets and liabilities, revealing their exposure to currency fluctuations or exchange rate risk.

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The proposed guidelines are more closely aligned with the Basel Committee on Banking Supervision (BCBS) standards, the RBI said.

The RBI will also ensure a consistent implementation across regulated entities, it said.

Revisions include eliminating the separate offshore/onshore NOP calculation and including accumulated surplus from overseas operations in NOP.

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Maintenance of the forex risk capital charge on the actual NOP and modifying the Shorthand method for calculation of NOP in alignment with Basel guidelines, which treats open position in gold separately, has also been proposed, it said.

There is also a provision to exempt certain structural forex positions from NOP, the central bank added. PTI AA DRR

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RBI proposes changes to banks' forex positions

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