What changed
RBI has decided to expand the scope of reporting for AD Cat-I banks, requiring them to report all OTC foreign exchange derivative contracts involving INR, undertaken globally by their related parties, to the Trade Repository of CCIL. This includes reporting by offshore related parties and transactions undertaken by related parties in India.
What it means for you
This change will provide more comprehensive data on foreign exchange derivative contracts and help RBI monitor and regulate the market more effectively. It may also increase the reporting burden on AD Cat-I banks, who will need to ensure that they report all relevant transactions and meet the specified requirements.
What you must do
- Review and update reporting processes to include OTC foreign exchange derivative contracts involving INR, undertaken globally by related parties
- Ensure that all relevant transactions are reported to the Trade Repository of CCIL, including those undertaken by offshore related parties and transactions in India
- Meet the specified requirements: report parent transactions from July 1, 2027; for other related parties, report at least 70% notional value by July 1, 2027, 80% by January 1, 2028, and 100% by July 1, 2028, with exclusions for back-to-back, inter-AD Cat-I, and sub-USD 1 million transactions
Who it affects
Authorised Dealer Category-I (AD Cat-I) banks, Related parties of AD Cat-I banks, including offshore entities and entities in India
What is the scope of reporting for AD Cat-I banks?
AD Cat-I banks are required to report all OTC foreign exchange derivative contracts involving INR, undertaken globally by their related parties, to the Trade Repository of CCIL.
What is the deadline for meeting the specified requirements for reporting?
The deadlines are July 1, 2027, January 1, 2028, and July 1, 2028, for meeting the requirements of reporting at least 70%, 80%, and 100% of notional value, respectively.
What transactions are excluded from reporting?
Transactions undertaken in terms of the back-to-back arrangement, transactions undertaken by related parties with other AD Cat-I banks in India, and transactions with a notional value of less than USD 1 million or equivalent may be excluded from reporting.