RBI Draft Directions on Reporting of OTC FX Derivatives by AD Banks

Press Release No. 2025-2026/2124; dated: 16.02.2026

The Reserve Bank of India (RBI) has released draft directions on reporting instructions for Authorised Dealer Category-I (AD Cat-I) banks, proposing a comprehensive reporting framework for Over-the-Counter (OTC) foreign exchange derivatives involving INR.

The draft aims to enhance transparency and strengthen monitoring of offshore and global derivative transactions linked to Indian markets.

1. Reporting of OTC Forex Derivatives to Trade Repository

Under the proposed framework:

• AD Category-I banks must report details of OTC foreign exchange derivative contracts involving INR
• Entered into by their offshore-related parties
• To the Trade Repository (TR) of the Clearing Corporation of India Ltd (CCIL)

This reporting requirement applies to transactions undertaken globally by related parties of AD Cat-I banks.

2. Scope of Transactions Covered

The draft directions specify that:

• All OTC foreign exchange derivative contracts involving INR, undertaken globally by related parties of AD Cat-I banks
• Must be reported to the Trade Repository

2.1 Definition of OTC Derivatives

For the purpose of these directions:

• OTC derivatives refer to derivatives not traded on stock exchanges
• This includes derivatives traded on electronic trading platforms (ETPs)

3. Reporting Requirements and Data Elements

AD Cat-I banks are required to:

• Report all elements of covered transactions
• Provide meaningful and complete information regarding:

1. 1. Transaction structure
   2. Counterparty details
   3. Pricing and settlement parameters
   4. Risk exposure

The objective is to enable comprehensive regulatory oversight.

4. Reporting of Counterparty Details

The draft clarifies that:

• A central counterparty (CCP) may be reported as the counterparty
• Only where the transaction:

1. 1. Is executed on an anonymous trading platform, and
   2. Cleared through the central counterparty

This ensures accurate representation of exposure in cleared trades.

5. Reporting Formats

• Reporting formats will be specified by CCIL
• Such formats will require prior approval of RBI

This ensures standardised reporting across AD Category-I banks.

6. Regulatory Objective

The proposed directions aim to:

• Enhance transparency in global INR-linked derivative markets
• Strengthen monitoring of offshore exposures
• Improve data availability for risk assessment
• Align reporting standards with evolving market practices

7. Key Takeaway

The RBI’s draft directions propose mandatory reporting by AD Category-I banks of all INR-linked OTC forex derivative transactions undertaken globally by their related parties, to CCIL’s Trade Repository, ensuring comprehensive regulatory oversight of offshore derivative exposures.

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