IFSC bank units to report all OTC forex deals to CCIL platform from June 1: RBI

IFSC banking units will report all over-the-counter (OTC) foreign exchange, interest rate and credit derivative transactions undertaken by them to CCIL's reporting platform from June 1, the Reserve Bank has said. The Reserve Bank has mandated that all OTC foreign exchange, interest rate and credit derivative transactions, both inter-bank and client, will be reported to CCIL's trade reporting platform, according to a notification.

OTC deals are conducted directly between two parties without involving any exchange.

The matter has been further discussed with banks operating IFSC banking units (IBU) and the Clearing Corporation of India (CCIL), the RBI said in a circular.


"Accordingly, it has been decided that IBUs shall report all OTC foreign exchange, interest rate and credit derivative transactions - both interbank and client transactions - undertaken by them to CCIL's reporting platform with effect from June 1, 2020," it said.

Additionally, as a one-time measure to ensure completeness of data, all matured and outstanding transactions as on May 31, 2020, shall be reported by July 31, 2020.

Banks operating IBUs have been permitted, with effect from June 1, 2020, to offer non-deliverable derivative contracts (NDDCs) involving the rupee, or otherwise, to persons not resident in India.

The International Financial Services Centre (IFSC) has been set up in Gujarat.

Banks can undertake such transactions through their IBUs or through their branches in India or through their foreign branches. Non-deliverable derivative contract (NDDC) means a foreign exchange derivative contract involving the Rupee, entered into with a person not resident in India and which is settled without involving the delivery of rupee.