RBI deletes a bank-level limit provision for non-option derivative contracts
Two directions dated 19 October 2026 delete Section C on non-option derivative limits from the Miscellaneous Directions for commercial banks and small finance banks.
RBI has deleted paragraph 37, Section C of Chapter IV, titled Limits for Non-Option Derivative Contracts, from the respective Miscellaneous Directions for commercial banks and small finance banks.
Both amendments take effect immediately upon issuance on 19 October 2026.
The change addresses a specified provision in bank directions. It should not be read as removing every eligibility, suitability or documentation requirement applicable to a business entering derivative transactions.
WHAT TO DO NEXT
Practical action
Businesses using derivatives should ask their bank how this amendment affects a proposed transaction and confirm continuing requirements.
This summary is general information. Read the original publication and check subsequent amendments before acting. For advice on your specific facts, consult our office.
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