RBI’s new forex reserve rules explained: FAQs on the 20% requirement, $2 million threshold and exemptions
The Reserve Bank of India (RBI) clarified new forex reserve rules on October 15, 2026, detailing a 20% reserve requirement for certain foreign exchange derivatives. Contracts exceeding $2 million and involving the Indian rupee must maintain this reserve, while smaller contracts are exempt. Banks must deposit the reserve daily in their current accounts with the RBI, impacting liquidity management.