**Summary:**
This Reserve Bank of India (RBI) circular, reference number FMRD.FMID No.302.05.002/2017-18, dated September 21, 2017, addresses all Authorised Dealer Category I (AD Category I) banks regarding the reporting of over-the-counter (OTC) foreign exchange (FCY) and interest rate derivatives to the Trade Repository (TR).
The circular removes the threshold of USD 1 million (or equivalent in other currencies) for reporting FCYINR and FCYFCY forward trades between AD Category I banks and their clients, effective October 03, 2017. This follows the removal of the threshold for FCYINR and FCYFCY option trades, which took effect on July 04, 2016, as communicated by Clearing Corporation of India Limited (CCIL) on June 02, 2016.
As a one-time measure to update outstanding balances in the TR, AD Category I banks are required to report the following to CCIL by October 06, 2017:
i. OTC currency option transactions between AD Category I banks and their clients undertaken before April 02, 2013, and outstanding as on September 29, 2017.
ii. OTC currency option transactions between AD Category I banks and their clients, with a value below USD 1 million (or equivalent), undertaken between April 02, 2013, and July 03, 2016, and outstanding as on September 29, 2017.
iii. Currency forward transactions between AD Category I banks and their clients, with a value below USD 1 million (or equivalent), and outstanding as on September 29, 2017.
The RBI advises AD Category I banks to ensure ongoing reconciliation of outstanding balances between their books and the TR.
For further information, contact the Financial Markets Regulation Department, Central Office, Reserve Bank of India, 1st Floor, Main Building, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001, India. Phone: 91-22-2260 3000, Fax: 91-22-2270 2290, Email: cgmfmrdrbi.org.in. The Chief General Manager, T. Rabi Sankar, is the contact person.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector and monetary policy.
Authorised Dealer Category I Banks: A category of banks authorized by the Reserve Bank of India to deal in foreign exchange.
Trade Repository: A system for reporting over-the-counter (OTC) derivative transactions.
OTC Foreign Exchange and Interest Rate Derivatives: Financial contracts whose value is derived from underlying assets, rates, or indexes, and are not traded on an exchange.
USD 1 million: A threshold amount in United States Dollars, previously stipulated for reporting certain foreign exchange transactions.
Clearing Corporation of India Limited: A central counterparty and clearing house for various financial market segments in India.
FCYINR and FCYFCY: Currency pairs involving the Indian Rupee (INR) and other foreign currencies (FCY).
Mumbai, Maharashtra: A city in Maharashtra, India, where the Financial Markets Regulation Department of the Reserve Bank of India is located.
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2017-18/63
FMRD.FMID No.3/02.05.002/2017-18 September 21, 2017
To,
All Authorised Dealer – Category I Banks
Madam/Sir,
Trade Repository for OTC Foreign Exchange and Interest Rate Derivatives
Attention of Authorised Dealer Category – I (AD Category-I) banks is invited to
circular no.FMD.MSRG.No.75/02.05.002/2012-13 dated March 13, 2013 on the
captioned subject wherein a threshold of USD 1 million, and equivalent thereof in
other currencies, was stipulated for reporting FCY-INR and FCY-FCY forward and
options trades between AD Category-I banks and their clients to the Trade
Repository (TR). Subsequently, Clearing Corporation of India Limited (CCIL), in
consultation with Reserve Bank on June 02, 2016, had informed its members the
removal of this threshold limit for reporting FCY-INR and FCY-FCY option trades
w.e.f. July 04, 2016.
2. It has now been decided to remove the threshold for reporting FCY-INR and
FCY-FCY forward trades between AD Category-I banks and their clients w.e.f.
October 03, 2017.
3. As a one-time measure, in order to update the outstanding balances in the
Trade Repository (TR), AD Category-I banks are advised to report the following to
the CCIL by October 06, 2017:
�वत्तीय बाज़ार �व�नयमन �वभाग, क�द्र�य कायार्लय, भारतीय �रज़व र् बक� , पहल� मंिजल, मुख्य भवन, शह�द भगत �सहं माग,र् फोटर्,
मुंबई – 400001, भारत
Financial Markets Regulation Department, Central Office, Reserve Bank of India, 1st Floor, Main Building, Shahid Bhagat Singh Marg,
Fort, Mumbai – 400001. India
फोन/Tel: +91-22-2260 3000, फैक्स/Fax: +91-22-22702290, ई-मेल/E-mail- cgmfmrd@rbi.org.in
िहन्दी आसान ह,ै इसका प्रयोग बढ़ाइएi. OTC currency option transactions between AD Category-I banks and their
clients undertaken before April 02, 2013 and outstanding as on September
29, 2017.
ii. OTC currency option transactions between AD Category-I banks and their
clients, with value below USD 1 million and equivalent thereof in other
currencies, undertaken in the period April 02, 2013 - July 03, 2016 and
outstanding as on September 29, 2017.
iii. Currency forward transactions between AD Category-I banks and their clients,
with value below USD 1 million and equivalent thereof in other currencies, and
outstanding as on September 29, 2017.
4. AD Category-I banks are advised to ensure that outstanding balances
between their books and the TR are reconciled on an ongoing basis.
(T. Rabi Sankar)
Chief General Manager