**Executive Summary**
The Reserve Bank of India (RBI) released draft Directions on Reporting Instructions for Authorised Dealer Category – I Banks on February 16, 2026. The purpose is to enhance transparency in Rupee derivative markets. Market participants and stakeholders are invited to provide feedback by March 09, 2026.
**Key Points / Main Content**
* **Reporting Requirements:**
* All Authorised Dealer Category – I banks shall report foreign exchange derivative transactions involving INR undertaken by their related parties globally.
* **Rationale:**
* The RBI aims to enhance transparency in over-the-counter (OTC) foreign exchange, interest rate, and credit derivative markets.
* Currently, not all offshore Rupee derivative transactions are reported, leading to non-transparency.
* This reporting requirement builds upon previous measures requiring standalone primary dealers and banks to report Rupee derivative transactions.
* **Feedback Mechanism:**
* Comments and feedback can be submitted via email with the subject line "Feedback on Draft Directions on Reporting Instructions for Authorised Dealer Category - I Banks."
* Alternatively, feedback can be forwarded to The Chief General Manager, Reserve Bank of India, Financial Markets Regulation Department, Mumbai.
* **Expected Outcome:**
* Increased transparency will enable better pricing decisions by market participants.
**Impact Analysis**
**Authorised Dealer Category – I Banks**
* **Impact:** These banks are required to report foreign exchange derivative transactions involving INR undertaken by their related parties globally.
* **Action Required:** Banks need to understand the new reporting requirements and establish processes to comply.
**Market Participants/Stakeholders**
* **Impact:** Market participants and stakeholders are invited to provide feedback and comments on the draft Directions.
* **Action Required:** Provide feedback on the draft Directions by March 09, 2026.
Key Entities Referenced
Reporting Instructions for Authorised Dealer Category – I Banks: Draft Directions released by RBI regarding reporting instructions for Authorised Dealer Category-I Banks.
Reserve Bank of India: The central bank of India, responsible for releasing the directions.
Mumbai: Location of the Reserve Bank of India central office where feedback on the draft directions should be sent.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 16, 2026
RBI releases draft Directions on Reporting Instructions for Authorised Dealer
Category – I Banks
The Reserve Bank of India has today released the draft Directions on Reporting
Instructions for Authorised Dealer Category – I Banks. Comments on the draft
Directions are invited from market participants, stakeholders and other interested
parties by March 09, 2026.
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
Background
The Reserve Bank 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. There is, however, an element of non-transparency
because the sizeable number of offshore Rupee derivative transactions are not
reported and therefore, 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.
Further, banks in India were required to report all Rupee interest rate derivative
transactions undertaken globally by their related parties in December 2025. Carrying
this process of enhancing transparency of 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
resultant transparency shall enable better pricing decisions by market participants.
Draft Directions for the same are being issued for soliciting public feedback.
(Brij Raj)
Press Release: 2025-2026/2124 Chief General Manager