The Reserve Bank of India has issued revised guidelines for calculating foreign exchange risk capital charges to align domestic banking standards with international benchmarks. Under the new framework, banks are required to compute these capital requirements on a continuous basis at both standalone and consolidated levels. The updated regulations are scheduled to take effect on April 1, 2027. This transition period is intended to allow financial institutions sufficient time to integrate the new computational requirements into their risk management systems. The directive also provides a provision for banks to exclude certain "structural" foreign exchange positions from the capital charge calculations. This exclusion is subject to specific, stringent conditions defined by the regulator to ensure the integrity of the risk framework.