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Corporate Laws Central Ministry of Finance Foreign Exchange Management Act, 1999

RBI issues a circular on directions related to Foreign Exchange Risk Reserve on Risk Management and Inter-Bank Dealings

10-Oct-2026 | RBI/2026-27/292 A.P. (DIR Series) Circular No. 26

RBI has issued a circular on directions related to Foreign Exchange Risk Reserve on Risk Management and Inter-Bank Dealings. Key Highlights: 1. Authorised Dealers shall be required to maintain a Foreign Exchange Risk Reserve (FERR) for foreign exchange derivative contracts involving INR undertaken with users. 2. The Reserve shall apply to all foreign exchange derivative contracts involving INR of notional value exceeding USD two million equivalent undertaken for the purpose of hedging current account transactions, and it shall be equal to 20 per cent of the INR equivalent of the notional amount of each derivative contract. 3. This Reserve shall be deposited and maintained by way of cash in India with the Reserve Bank daily and shall be maintained until the termination of the contract. 4. Authorised Dealers shall report the details of the FERR maintained daily through Centralised Information Management System (CIMS) of the Reserve Bank.

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Corporate Laws

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Declaration of Additional Controlled Area III, Ganaur, District Sonipat, under the Haryana Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963

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