India's Reserve Bank (RBI) is set to enforce a proposal requiring banks to report offshore rupee derivative trades, a move aimed at increasing transparency in a market that significantly impacts the rupee's exchange rate. Currently, domestic banks must report all derivative transactions, including those by their overseas offices, while foreign banks only report trades executed by their Indian units. The RBI's proposal, which seeks to have banks report at least 70% of these transactions by February 2027, is intended to improve price discovery and level the playing field between Indian and foreign banks. The offshore forward market has a substantial influence on the rupee, with approximately $60 billion in cross-border trades recorded in April 2025. However, foreign banks have expressed concerns about potential breaches of local laws if they share this data. Despite these objections, the RBI maintains that its reporting requirements are within its jurisdiction. The successful implementation of this proposal may require coordination with other central banks, which could complicate the process.