RBI to implement reporting framework for over-the-counter FX derivatives in phases from July 2027

The Reserve Bank of India (RBI) has stated that it will implement its reporting framework for over-the-counter (OTC) foreign exchange (FX) derivative contracts involving the rupee in phases from July 1, 2027 onwards, while retaining most of the provisions set out in its draft directions for Authorised Dealer Category-I (AD Cat-I) banks. It noted that banks will now be required to ensure that reported transactions account for at least 70 per cent, 80 per cent and 90 per cent of the notional value of such contracts over a staggered period. Both deliverable and non-deliverable OTC foreign exchange derivative contracts involving the rupee will be covered under the framework.