**Summary:**
On July 9, 2025, the Reserve Bank of India (RBI) released the Draft Reserve Bank of India Novation of OTC Derivative Contracts Directions, 2025, under Section 45W of the RBI Act, 1934. This draft aims to update and rationalize the regulatory framework for the novation of Over-the-Counter (OTC) derivative contracts, taking into account changes since the previous circular issued on December 9, 2013, and market feedback. The RBI invites comments and feedback from banks, market participants, and other interested parties by August 1, 2025. Feedback should be directed 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, or via email with the subject line "Feedback on Draft Reserve Bank of India Novation of OTC Derivative Contracts Directions, 2025."
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
RBI Act, 1934: The Reserve Bank of India Act, the legal framework under which the Reserve Bank of India operates.
Draft Reserve Bank of India Novation of OTC Derivative Contracts Directions, 2025: The proposed regulatory guidelines concerning the novation of Over-the-Counter (OTC) derivative contracts.
Section 45 W: A specific section of the RBI Act, 1934, under which the directions are being issued.
Mumbai, Maharashtra: A city in Maharashtra, location of the Reserve Bank of India's Central Office.
Financial Markets Regulation Department: A department within the Reserve Bank of India responsible for regulating financial markets.
RBI circular dated December 09, 2013: Existing circular governing novation of OTC derivative contracts, which is being reviewed.
Puneet Pancholy: Chief General Manager at Reserve Bank of India.
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भारतीय �रज़वर् बक�
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, क��ीय कायार्लय, शहीद भगत �संह मागर्, फोटर्, मबुं ई - 400 001
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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
July 09, 2025
RBI releases Draft Reserve Bank of India (Novation of OTC Derivative
Contracts) Directions, 2025 under Section 45 W of the RBI Act, 1934
The Reserve Bank of India today placed on its website Draft Reserve Bank of India
(Novation of OTC Derivative Contracts) Directions, 2025. Comments on the draft
Directions are invited from banks, market participants and other interested parties by
August 01, 2025.
Feedback on the draft Directions may be 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
Or by email with subject line “Feedback on Draft Reserve Bank of India (Novation of
OTC Derivative Contracts) Directions, 2025”.
Background and Objective
At present, the novation of OTC derivative contracts is governed by RBI circular
dated December 09, 2013. The provisions of the circular have been reviewed in the
light of changes in the overall regulatory framework governing OTC derivatives since
2013 and the market feedback received as well as with a view to rationalising the
related regulatory requirements.
(Puneet Pancholy)
Press Release: 2025-2026/682 Chief General Manager