LatestCorporate Compliance 21 October 2026
RBI Removes Derivative Caps for Small Finance Banks in 2026
The Reserve Bank of India has lifted non‑option derivative exposure caps for small finance banks, effective in the 2026 compliance calendar. The move is intended to reduce capital pressure, boost market activity and fit wider regulatory reforms, though banks remain bound by overall risk‑management rules.
The RBI announced that small finance banks will no longer face limits on non‑option derivative exposures starting 2026. See the full announcement here.
- Limits removed to free up capital.
- Expected to increase market participation by these banks.
- Banks must still comply with broader risk‑management standards.
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