Reserve Bank of India (RBI) releases draft foreign exchange risk capital rules effective April 2027.

Exam-focused facts from the 16 January 2026 current affairs briefing.

Key facts

Banks must compute foreign exchange risk capital requirements on a continuous basis at both consolidated and standalone levels.
Capital for foreign exchange risk must be maintained at the close of each business day.
Banks may exclude specific 'structural' foreign exchange positions from the net open position subject to strict conditions.
The methodology for structural foreign exchange positions must be documented in the bank's risk management policy.