Mumbai, February 16 The RBI on Monday issued draft guidelines for banks to report foreign exchange derivative transactions involving the rupee undertaken by their related parties globally, a move aimed at enabling better pricing decisions by market participants.
The Reserve Bank said it has been taking several measures to enhance transparency in the markets for over-the-counter (OTC) foreign exchange, interest rate, and credit derivatives.
As part of these measures, all transactions in OTC derivatives are reported to the trade repository (TR) of the Clearing Corporation of India Limited (CCIL) by market-makers.
However, there is an element of non-transparency because the significant number of offshore rupee derivative transactions are not reported, and therefore, are not available to market participants. This shortcoming was partly addressed when standalone primary dealers were required to report all rupee derivative transactions undertaken globally by their related parties in October 2022.
Furthermore, banks in India were required to report all rupee interest rate derivative transactions undertaken globally by their related parties in December 2025.
"To continue enhancing transparency in the rupee derivative markets, it is now proposed that all Authorised Dealer Category–I banks shall report foreign exchange derivative transactions involving INR undertaken by their related parties globally," the RBI said.
The resulting transparency will enable better pricing decisions by market participants, it said.
According to the draft guidelines, Authorised Dealer Category-I banks will report all elements of covered transactions which are relevant to provide meaningful information about the transaction.
This will include, but not be limited to, the notional value, name of the counterparty, maturity date, currency, specifications, as applicable to the transaction, it added.
The central bank has invited comments on the draft guidelines from market participants, stakeholders, and other interested parties by March 9.