RBI Announces Expanding Forex Trade Reporting Requirements

RBI Announces Expanding Forex Trade Reporting Requirements

The move will enhance transparency in the market

The Reserve Bank of India (RBI) has announced that it will expand the reporting requirement for forex transactions and include foreign exchange spot deals to ensure completeness of transaction data in the trade repository (TR) of the Clearing Corporation of India Ltd (CCIL).

The circular read, "To ensure completeness of transaction data in TR for all foreign exchange instruments, it has been decided to expand the reporting requirement to include foreign exchange spot (including value cash and value Tom) deals in a phased manner.”

Currently, authorized dealers report all over-the-counter (OTC) foreign exchange derivative contracts and foreign currency interest rate derivative contracts undertaken by them directly or through their overseas entities to the TR of CCIL.

However, transactions involving the rupee or otherwise shall now be reported to the TR. Money-changing transactions will not be covered under the new rules.

The authorized dealers have been directed to report all inter-bank foreign exchange contracts to the TR of CCIL, effective 10 February 2025. The dealers must ensure the accuracy of the transactions.

The RBI clarified there was no requirement to match transactions with overseas counterparties and clients in the TR, as it was not essential for them to report the transactions.