LatestIncome Tax 21 October 2026
RBI Lifts Limits on Non-Option Derivative Contracts for Banks
The Reserve Bank of India has lifted the caps on non‑option derivative contracts for commercial banks, as outlined in the Second Amendment Directions of 2026. Removing these limits gives banks greater flexibility in managing derivative exposures and aligns Indian practices with global norms.
The Reserve Bank of India (RBI) has officially removed the quantitative caps on non‑option derivative contracts that applied to commercial banks.
- Cap removal: Banks are no longer bound by the previous limits on such contracts.
- Increased flexibility: Institutions can now manage derivative exposures more freely.
- Global alignment: The change brings India’s derivative market rules closer to international standards.
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