The Reserve Bank of India issued the Reserve Bank of India (Commercial Banks - Miscellaneous) Second Amendment Directions, 2026 on 19 October 2026. The amendment deletes Section C, titled 'Limits for Non-Option Derivative Contracts', in Chapter IV (paragraph 37) of the Reserve Bank of India (Commercial Banks - Miscellaneous) Directions, 2025.
The RBI has exercised its powers under section 35A of the Banking Regulation Act, 1949, along with other enabling provisions. The amendment states that it comes into effect immediately upon issuance, making 19 October 2026 the operative date.
For compliance teams at commercial banks, the change requires review of internal procedures and references based specifically on the deleted paragraph. The notification does not state that other applicable derivative, prudential or risk-management requirements are withdrawn; those should be considered separately.