RBI Expands Reporting Norms for Global INR Derivative Transactions by Banks
RBI Expands Reporting Norms for Global INR Derivative Transactions by Banks
The Reserve Bank of India (RBI), vide A.P. (DIR Series) Circular No. 08 dated 27 April 2026, has introduced enhanced reporting requirements for Authorised Dealer Category-I (AD Cat-I) banks in relation to over-the-counter (OTC) foreign exchange derivative contracts. Earlier, banks were required to report their own OTC derivative transactions to the Trade Repository (TR) of Clearing Corporation of India Ltd. (CCIL). The new circular significantly widens the scope by mandating reporting of INR-linked derivative transactions undertaken globally by related parties of such banks, including offshore entities.
Key Directions: The RBI has clarified and mandated the following:
1. Expanded Reporting Scope: AD Cat-I banks must report all OTC foreign exchange derivative contracts involving INR undertaken globally by their related parties.
This includes both deliverable and non-deliverable derivatives.
2. Coverage of Offshore Entities: Offshore-related parties’ INR derivative transactions must also be reported. Such related parties may independently report, but responsibility also lies with the Indian AD bank.
3. Reporting Threshold Relaxation: Banks may exclude transactions below USD 1 million (or equivalent).
4. Exclusions: No reporting required for: Back-to-back transactions and Trades already reported via other AD Cat-I banks in India .
5. Phased Compliance Timeline From July 1, 2027 → 100% reporting of parent entity’s INR derivative transactions
From July 1, 2027 → Minimum 70% coverage for other related parties
From Jan 1, 2028 → Minimum 80% coverage
From July 1, 2028 → 100% reporting of all related party transactions
6. Reporting Timeline : Preferably on the same day and Maximum within 2 working days.
7. Detailed Data Reporting :
- Must include notional value, counterparty, maturity, currency, etc.
- Formats to be as prescribed by CCIL with RBI approval
- RBI is pushing towards greater transparency in INR derivative markets, especially offshore exposures, by making Indian banks responsible for reporting global INR-linked derivative activity of their group entities.
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