The Reserve Bank of India has issued the Master Direction – Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025, which will come into force on March 1, 2026. These Directions govern all Rupee Interest Rate Derivatives transactions undertaken in the over-the-counter market and on recognised stock exchanges in India. They specify eligible participants, outline classification of users as retail or non-retail, and prescribe the types of Interest Rate Derivative products that may be offered. The Directions also set out conditions for hedging and non-hedging transactions, including Foreign Currency Settled Interest Rate Derivative transactions with non-residents, and introduced detailed reporting requirements to the Trade Repository of the Clearing Corporation of India Limited. Further, the Directions prescribe prudential, accounting and capital requirements, empower the Reserve Bank of India to seek information, and allow regulatory or penal action, including temporary restriction from participating in the Interest Rate Derivatives market for violations. They supersede the earlier Directions listed in Annex-I.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13214&Mode=0
