The Reserve Bank of India (RBI) has issued new directives requiring banks to report all overseas over-the-counter (OTC) foreign exchange derivative contracts involving the Indian rupee (INR) to the Clearing Corporation of India (CCIL). This initiative is aimed at enhancing transparency in the derivatives market. According to the circular, banks categorized as Authorised Dealer Category – I (AD Cat-I) must report details of OTC foreign exchange derivative contracts involving INR undertaken by their offshore related parties. The RBI has provided operational flexibility, allowing banks to refrain from reporting transactions with a notional value not exceeding $1 million or equivalent. Additionally, transactions under back-to-back arrangements and those with other AD Cat-I banks do not require reporting. The RBI has established a phased roadmap for compliance: banks must report 70% of the notional value by July 2027, 80% by January 2028, and achieve full reporting by July 2028. Transactions should ideally be reported on the transaction date, but must be completed within two working days.