RBI
RBI removes Non-Option Derivative Contract limits for Small Finance Banks
20 October 2026 · RBI
RBI has amended the Small Finance Banks Miscellaneous Directions, 2025 by deleting the section that prescribed limits for non-option derivative contracts. The change is effective immediately.
Points to Remember
- Directions issued under Section 35A of the Banking Regulation Act, 1949.
- Section C, 'Limits for Non-Option Derivative Contracts', of Chapter IV (para 37) deleted.
- Applies to Small Finance Banks under the SFB Miscellaneous Directions, 2025.
- Effective immediately upon issuance — October 19, 2026.
Why it matters
Non-option derivative exposure rules have been dropped for SFBs, so review the bank's derivative product policy and exposure reporting accordingly.
Part of the October 2026 digest.
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