Brief Overview:
INR FX derivative contracts done globally by related parties to be reported to Trade Repository (TR) of CCIL. Following earlier reporting mandates for primary dealers and banks in respect of INR interest rate derivatives, RBI now proposes extending reporting to global INR FX derivatives of related parties of AD Category‑I (AD Cat-I) banks.
Comments on the proposal to be provided by 9th March 2026.
Technical Details:
Key Highlights:
- Scope of Reporting
- AD Cat‑I banks must report all global OTC INR FX derivatives of their offshore related parties.
- Related parties may report derivatives directly to CCIL’s TR.
- Related Party Definition
- Related party to exclude associates.
- Exemptions
- Back‑to‑back transactions.
- Transactions with other AD Cat-I banks in India.
- Transactions with notional value of USD 1 million or less.
- Reporting Thresholds
- Minimum coverage of 70% after 12 months.
- Minimum coverage of 80% after 18 months.
- Minimum coverage of 90% after 24 months.
- Transaction Details to be Reported
- Central Counterparty may be named only for anonymous cleared trades.
- Reporting to be in CCIL‑prescribed formats approved by RBI.
- Reporting Timeline
- Trades must be reported within T+2 working days
Takeaways:
This enhances visibility into global INR exposures, strengthens market transparency, and reduces hidden offshore risks. It also nudges banks to upgrade their disclosure, monitoring, and reporting system.
For further details, please see:
Draft Directions on Reporting Instructions for AD Cat-I banks
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