RBI Mandates Unique Transaction Identifier For OTC Derivatives From January 1, 2027

Mumbai: Unique Transaction Identifier (UTI) will become mandatory for all direct private trades in rupee interest rate and foreign currency derivatives from January 1, 2027, the Reserve Bank said on Wednesday. The UTI has been conceived as one of the key data elements identified globally for reporting over-the-counter (OTC) derivative transactions with a view to enabling policymakers to obtain a comprehensive view of the OTC derivatives market.

At present, all transactions in over-the-counter (OTC) markets for rupee interest rate derivatives, forward contracts in government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives are reported to the trade repository managed by Clearing Corporation of India Limited (CCIL-TR).

"It has now been decided to mandate UTI for all such transactions," the RBI said in a circular. The directions will come into effect from January 1, 2027. The directions will be applicable to OTC derivative transactions entered into on or after the date the directions come into effect. A UTI will have a maximum of 52 characters comprising the Legal Entity Identifier (LEI) of the generating entity, followed by a unique identifier.

The RBI had earlier proposed rolling out the UTI mandate from April 1, but postponed it to January 1, 2027, to provide sufficient time to market participants to build necessary technical capabilities. 

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