RBI’s October 2026 Forex Measures: What Indian Banks and Financial Institutions Need to Know
India’s foreign exchange market is undergoing significant regulatory changes in October 2026. The Reserve Bank of India (RBI) has introduced measures to address pressure on the Indian rupee, strengthen discipline in foreign exchange derivative transactions and manage demand for US dollars.
The measures announced from October 10 include a new Foreign Exchange Risk Reserve (FERR) requirement for certain rupee-linked derivatives, tighter rules on foreign exchange hedging and a special dollar supply arrangement for major public-sector oil companies. Further changes announced on October 12 expanded the scope of the reserve requirement.
These developments have implications for banks, authorised foreign exchange dealers, importers, exporters, NBFCs with relevant foreign exchange exposures and businesses that depend on international payments.
For financial institutions, the changes also highlight the importance of accurate exposure verification, timely regulatory reporting, effective risk management and reliable operational processes.
