RBI Issues Draft Directions to Improve Reporting of INR Derivative Transactions

The Reserve Bank of India has released draft Directions for Authorised Dealer Category‑I banks. The draft aims to improve transparency in Rupee‑based derivative markets.

RBI has invited comments from interested stakeholders by March 09, 2026. The central bank has also provided clear channels for sending feedback through email or post.

New Reporting Requirements for AD Category‑I Banks

The draft Directions mandate reporting of all foreign exchange derivative transactions involving INR undertaken globally by related parties of AD Category‑I banks. RBI intends to reduce information gaps caused by unreported offshore Rupee derivative activity.

These transactions will now fall within the existing reporting framework. The move is expected to increase visibility of cross‑border INR derivative exposure.

Background On RBI’s Transparency Measures

RBI has taken multiple steps in recent years to strengthen transparency in OTC derivatives. Market‑makers already report all OTC derivatives to the CCIL trade repository.

Offshore Rupee derivative transactions have remained outside the reporting system and created blind spots for domestic participants. Earlier reforms in October 2022 and December 2025 expanded reporting obligations to primary dealers and banks for global Rupee derivative transactions undertaken by their related parties.

Rationale For Extending Reporting Obligations

The absence of offshore Rupee derivative reporting has created persistent gaps in market information. These gaps limit the ability of domestic participants to assess market conditions accurately.

The new draft Directions aim to address this by capturing global INR foreign exchange derivative activity. The regulator expects that wider reporting will lead to more consistent and transparent pricing.

Stakeholder Participation and Submission Process

RBI has invited comments from banks, market participants and other stakeholders engaged in INR derivative markets. Feedback may be sent by email with the specified subject line. Written submissions may also be sent to the Chief General Manager at RBI’s Central Office in Mumbai. All comments will be reviewed before the Directions are finalised.

The comments/feedback may be submitted by email with the subject line “Feedback on Draft Directions on Reporting Instructions for Authorised Dealer Category – I Banks” or forwarded to:

The Chief General Manager

Reserve Bank of India

Financial Markets Regulation Department

9th Floor, Central Office Building

Shahid Bhagat Singh Marg, Fort

Mumbai – 400 001

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Conclusion

The draft Directions mark another step in expanding INR derivative reporting coverage. They build on previous measures aimed at reducing non‑transparent offshore activity.

RBI expects the updated reporting framework to strengthen price discovery and market efficiency. Final Directions will be issued after reviewing the comments submitted by March 09, 2026.

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