RBI mandates reporting of the OTC Derivatives – Transactions undertaken by IBUs and non-deliverable derivatives contracts (involving Rupee or otherwise) to the Reporting Platform of Clearing Corporation India Limited.

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The RBI vide its notification RBI/2019-20/233 has permitted the banks in India which has the Authorised Dealer Category-1 License under FEMA, 1999 to offer non-deliverable derivative contracts (NDDCs) involving the Rupee, or otherwise, to persons not resident in India from June 1, 2020.
In this regard, the RBI has specified banks to undertake such transactions through their IBUs (IFSC Banking Units) or through their branches in India or through their foreign branches (in case of foreign banks operating in India, through any branch of the parent bank).
On the other hand, with effect from June 01, 2020 it is made mandatory to report all the foreign exchange non-deliverable derivative contracts (involving Rupee or otherwise) undertaken by banks in India through their IBUs (IFSC Banking Units) or through their branches in India or through their foreign branches (in case of foreign banks operating in India, through any branch of the parent bank) to the CCIL’s (Clearing Corporation India Limited) reporting platform .
Further, the RBI has also mandated the inter-bank and client, to report to the CCIL’s Trade Reporting Platform with regard to the foreign exchange, interest rate and credit derivative transactions etc from June 01, 2020. More importantly it is notified by the RBI to report all the matured and outstanding transactions as on May 31, 2020 by the end July, 2020 as the one-time measure to ensure completeness of data,
Thus, the RBI under the provisions of the Section 45W of the Reserve Bank of India Act, 1934 has issued the directions to the Clearing Corporation of India (CCIL) to communicate the methodology of such reporting to its members .

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