Reserve Bank of India Proposes New Standards for Bank Foreign Exchange Risk and Capital Requirements
The Reserve Bank of India has proposed new rules to standardize how banks calculate foreign exchange exposure and capital requirements. The changes aim to align with global standards by April 2027.
Insights:
The Reserve Bank of India has issued a comprehensive proposal to modernize how financial institutions calculate net foreign exchange exposure and the capital they must maintain against associated risks. Announced on January 14, 2026, the regulatory overhaul is designed to align the banking norms of India 
INwith international standards. This policy shift is expected to ensure a more consistent implementation of risk management practices across all regulated financial entities in the country.
INwith international standards. This policy shift is expected to ensure a more consistent implementation of risk management practices across all regulated financial entities in the country.
