The Reserve Bank of India (RBI) has introduced new guidelines requiring banks to report all overseas foreign exchange derivatives transactions involving the Indian rupee. This move aims to enhance price discovery, increase transparency, and mitigate speculative activities in the derivatives market. The phased implementation will start on July 1, 2027, with banks required to report all transactions executed by their parent entities and ensure at least 70% of trades by other related entities are reported, increasing to 80% by January 1, 2028, and reaching 100% by July 1, 2028. Currently, while onshore transactions are reported, a significant portion of rupee-linked derivative activity occurs offshore, which has previously lacked visibility. This new reporting framework allows banks to skip certain small transactions and back-to-back trades already captured under existing rules, easing operational burdens. The RBI's initiative follows recent tightening measures to control speculative trading in the currency market, as the Indian rupee has seen fluctuations against the US dollar, closing at 94.19 per dollar.