This Reserve Bank of India circular, dated October 12, 2026, updates guidelines on Risk Management and Inter-Bank Dealings. It clarifies that Non-Deliverable Derivative Contracts (NDDCs) involving INR can only be offered to non-resident users for hedging purposes. The circular also introduces a Foreign Exchange Risk Reserve (FERR) requirement for Authorised Dealers undertaking foreign exchange derivative contracts involving INR, specifying its calculation and maintenance.