Economy
RBI Removes Limits on Banks’ Non-Option Derivative Contracts
The RBI has deleted its section governing limits on banks’ non-option derivative contracts, effective immediately.
What happened
The Reserve Bank of India issued its Commercial Banks—Miscellaneous Second Amendment Directions, 2026, on October 19. The amendment deletes Section C of Chapter IV of the 2025 Directions, which covered “Limits for Non-Option Derivative Contracts.” The change took effect immediately upon issuance under the RBI’s powers under the Banking Regulation Act, 1949.
Why it matters
Banks are no longer governed by the deleted section’s specific limits on non-option derivative contracts, although the excerpt provides no replacement framework or further detail.
Source: RBI Notifications