RBI wants banks to keep more backup for forex and gold risks
The Reserve Bank of India (RBI) just proposed a new rule: from April 1, 2027, most banks and financial institutions will need to set aside 9% capital against their net open positions in foreign currency and gold, with exceptions such as Standalone Primary Dealers facing a 15% charge and specific treatments for some co-operative and other banks (for example, some co-operative banks that are not Authorized Dealers may not be required to maintain forex risk capital and may only need to compute/hold capital for gold positions).
This is meant to make the banking system sturdier when it comes to global money moves.
Who's affected and why does it matter?
This covers commercial banks, co-op banks, small finance banks, and regional rural banks that deal in forex or gold.
RBI's goal is simple—make sure these players are better prepared for sudden swings in currency or gold prices.
The new rules also bring India closer to international (Basel) standards.
What's changing behind the scenes?
No more splitting calculations between onshore and offshore positions—everything gets counted together now.
Gold risks will be measured with a tweaked method too.
RBI has released the draft for public comment; the source does not specify a deadline for feedback.
If you're following how Indian banking adapts globally or just curious about money safety nets, this one's worth your attention.