**Summary:**
This Reserve Bank of India (RBI) circular (FMRD.FMID No.2302.05.002/2019-20) dated January 01, 2020, modifies the reporting requirements for Over-the-Counter (OTC) currency derivative transactions to the Trade Repository (TR). Previously, only client transactions with a notional amount of USD 1 million (or equivalent in other currencies) or greater were required to be reported. Effective January 06, 2020, all client transactions in currency derivatives, regardless of notional amount, must be reported to the TR. As a one-time measure, AD Category-I banks are required to report all outstanding client transactions with a notional amount below USD 1 million to the TR by January 31, 2020, to update the Trade Repository. These directions are issued under section 45W of the RBI Act. Contact person for clarifications is Manoj Kumar, Deputy General Manager.
Key Entities Referenced
RESERVE BANK OF INDIA: The central bank of India, responsible for monetary policy and regulation of the banking system.
Category-I Authorised Dealer Banks: Banks authorized by the Reserve Bank of India to deal in foreign exchange.
OTC Currency Derivative transactions: Over-the-counter transactions involving currency derivatives.
Trade Repository (TR): A central system for reporting and recording details of over-the-counter (OTC) derivative transactions.
USD 1 million: A threshold amount in US dollars, relevant for reporting currency derivative transactions.
currency derivatives: Financial instruments whose value is derived from the value of one or more currencies.
RBI Act: Reserve Bank of India Act, the legislation governing the functioning of the Reserve Bank of India.
Manoj Kumar: Deputy General Manager at Reserve Bank of India, as per the document.
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2019-20/132
FMRD.FMID No.23/02.05.002/2019-20 January 01, 2020
All Category-I Authorised Dealer Banks
Madam/Sir,
Reporting of OTC Currency Derivative transactions to trade repository
Please refer to our circular FMD.MSRG.No.94/02.05.002/2013-14 dated December 04, 2013 on
the captioned subject, wherein a threshold of USD 1 million, and equivalent thereof in other
currencies, was stipulated for reporting client transactions in currency derivatives (currency swaps
and FCY FRA/IRS) to the Trade Repository (TR).
2. It has now been decided that all client transactions in currency derivatives, including those with
notional amount of below USD 1 mn, shall now be reported to the TR, with effect from
January 06, 2020.
3. As a one-time measure, in order to update the transactions in the Trade Repository, AD
Category – I banks shall report all outstanding client transactions with notional amount below
USD 1 mn to the TR by January 31, 2020.
4. These directions are issued under section 45W of RBI Act and shall come into force with
effect from the date of these directions.
Yours faithfully
(Manoj Kumar)
Deputy General Manager
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