Brief Overview:

AD Category I banks (“AD Banks”) are now required to report all OTC foreign exchange derivative transactions involving INR, undertaken globally by their related parties, to CCIL’s trade repository.

Technical Details:

Key Highlights

1) What gets reported: All OTC foreign exchange derivative contracts (deliverable and non‑deliverable) involving INR that are undertaken globally by offshore related parties of an AD Banks.

2) Who reports: Primarily the AD Bank; related parties may also report directly to CCIL.

3) Related Party Scope: Reporting covers parent entities, branches, subsidiaries and other related parties of the AD Banks, irrespective of where the transaction is booked

4) Reporting timeline: Preferably on the date of the transaction, and in any event within two working days from the transaction date.

5) Exemptions / flexibilities:

(a) Back‑to‑back transactions need not be reported

(b) Transactions undertaken by related parties with other AD Banks in India are excluded.

(c) Optional non‑reporting for contracts with notional ≤ USD 1 million (or equivalent).

6) Data requirements: Notional amount, counterparty, maturity, currency, and contract specifications, as prescribed by CCIL.

7) Phased coverage:

(a) From 1 July 2027: 100% reporting of INR FX derivatives undertaken by the parent (and its branches)

(b) Reporting for related parties other than the parent to cover

(i) ≥70% of notional by July 1, 2027;

(ii) ≥80% by January 1, 2028; and

(iii) 100% coverage by July 1, 2028.

Takeaways:

By extending reporting obligations to offshore related‑party INR FX derivatives, RBI is strengthening regulatory visibility across the domestic and global rupee derivatives market.

For further details, please see:

Reporting instructions for Authorised Dealer Category-I Banks 

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