RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2024-25/32
A. P. (DIR Series) Circular No. 04 May 03, 2024
To,
All Authorised Persons
Madam/Sir,
Master Direction – Risk Management and Inter-Bank Dealings: Amendments
Attention of Authorised Persons is invited to the Foreign Exchange Management
(Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 03, 2000
[Notification no. FEMA.25/RB-2000 dated May 03, 2000], as amended from time to
time and Master Direction - Risk Management and Inter-Bank Dealings dated July 05,
2016, as amended from time to time (hereinafter referred as ‘Master Direction’).
2. Standalone Primary Dealers (SPDs) have been granted authorisation under Section
10(1) of the Foreign Exchange Management Act (FEMA), 1999 pursuant to notification
no. DNBR (PD) CC.No.094/03.10.001/2018-19 July 27, 2018. Accordingly,
amendments are being made in the Master Direction to reflect the applicability of the
provisions to SPDs. These amendments are placed at Annex I herewith. SPDs shall
continue to comply with all applicable Directions issued by the Reserve Bank of India.
3. Additionally, directions on reporting of OTC foreign exchange derivative contracts
and foreign currency interest rate derivative contracts to the Trade Repository of
Clearing Corporation of India Ltd. have been updated and incorporated in Part E of
the Master Direction. Certain directions on reporting relating to format, mode,
timelines, etc., have also been updated and the amendments being made to the
Master Direction are placed at Annex II herewith.
4. These Directions will come into force with immediate effect and in supersession of
the circulars listed at Appendix III of the Master Direction.
�वत्तीय बाज़ार �व�नयमन �वभाग,क�द्र�य कायार्लय भवन, नौवीं मंिजल, शह�द भगत �संह मागर्, फोटर् , मुंबई–400001.भारत
फोन: (91-22) 2260 1000, ई-मेल: [email protected]
Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. India
Tel: (91-22) 2260 1000, e-mail- [email protected]
�हन्द� आसान है , इसका प्रयोग बढ़ाइए
5. For the purpose of this circular, Authorised Persons shall mean Authorised Dealer
Category-I banks and Standalone Primary Dealers authorised as Authorised Dealer
Category-III under Section 10 (1) of the FEMA, 1999.
6. The directions contained in this circular have been issued under Section 45W of the
Reserve Bank of India Act, 1934 and Sections 10(4) and 11(1) of the Foreign
Exchange Management Act, 1999 (42 of 1999) and are without prejudice to
permissions / approvals, if any, required under any other law.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
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Annex I
Sr. Existing Directions Revised/Additional Directions
No.
New para shall be inserted after Para 4 of the cover circular.
(i) - 5. Authorised Persons shall mean
Authorised Dealer Category - I banks,
Standalone Primary Dealers authorised as
Authorised Dealer Category – III and for
the purpose of exchange traded currency
derivatives, Recognised Stock Exchanges
and Recognised Clearing Corporations,
authorised under Section 10 (1) of the
FEMA, 1999.
Para 1 (ii) of Part A (Section I) shall be modified.
(ii) For the purpose of these For the purpose of these Directions,
Directions, Authorised Dealer Authorised Dealer shall mean Authorised
shall mean Authorised Dealer Dealer Category - I banks and Standalone
Category - I banks, unless stated Primary Dealers authorised as Authorised
otherwise. Dealer Category - III, unless stated
otherwise. Any specific reference solely to
Authorised Dealer Category-I banks shall
not be applicable for Standalone Primary
Dealers.
Para 4 and 5 of Part A (Section III) shall be removed and a new para shall be inserted
after Para 6 (b) of Part A (Section III).
- (c) While participating in the ETCD market,
(iii)
AD Category-I banks shall comply with the
Master Direction – Reserve Bank of India
(Financial Services provided by Banks)
Directions, 2016 dated May 26, 2016, as
amended from time to time and
Standalone Primary Dealers authorised as
Authorised Dealer Category-III shall
comply with the Master Direction –
Standalone Primary Dealers (Reserve
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Bank) Directions, 2016 dated August 23,
2016, as amended from time to time.
Para 6 of Part A (Section III) shall be renamed.
(iv) Operational Guidelines, terms Participation of Authorised Dealers in the
and conditions for AD Category- exchange traded currency derivative
I banks participation in the (ETCD) market
ETCD market
Para 5 of Part C shall be renamed.
(v) Loans/Overdrafts Loans/Overdrafts by Authorised Dealer
Category-I banks
New para shall be inserted after Para 5 of Part C
(vi) - 5A. Overseas foreign currency
borrowing by Standalone Primary
Dealers authorised as Authorised
Dealer Category-III
(a) Standalone Primary Dealers may
borrow in foreign currency from their
parent or correspondent outside India or
any other entity as permitted by Reserve
Bank of India and avail overdraft in nostro
accounts (not adjusted within five days),
only for operational reasons. Such
borrowings shall be within the limit for
foreign currency borrowings prescribed in
the Master Direction – Standalone
Primary Dealers (Reserve Bank)
Directions, 2016 dated August 23, 2016,
as amended from time to time.
(b) If drawals in excess of the above limit
are not adjusted within five days, a report,
should be submitted to the Chief General
Manager, Financial Markets Regulation
Department, Reserve Bank of India,
Central Office, 9th Floor, Central Office
Building, Shahid Bhagat Singh Road,
Fort, Mumbai – 400 001, within 15 days
from the close of the month in which the
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limit was exceeded. Such a report is not
necessary if arrangements exist for value
dating.
Para A (i) of Annex I shall be substituted
(vii) i. Net Overnight Open Position i. Net Overnight Open Position Limit
Limit (NOOPL) for calculation (NOOPL) for calculation of capital
of capital charge on forex risk charge on forex risk
NOOPL may be fixed by the NOOPL may be fixed by the boards of the
boards of the respective banks respective Authorised Dealers and
and communicated to the communicated to the Reserve Bank
Reserve Bank immediately. immediately through Centralised
However, such limits should not Information Management System (CIMS) /
exceed 25 percent of the total email. However, such limits should not
capital (Tier I and Tier II capital) exceed 25 percent of the total capital (Tier
of the bank. I and Tier II capital) of the Authorised
Dealer.
Para B (i) of Annex I shall be substituted
(viii) AGL may be fixed by the boards AGL may be fixed by the boards of the
of the respective banks and respective Authorised Dealers and
communicated to the Reserve communicated to the Reserve Bank
Bank immediately. However, immediately through CIMS / email.
such limits should not exceed 6 However, such limits should not exceed 6
times the total capital (Tier I and times the total capital (Tier I and Tier II
Tier II capital) of the bank. capital) of the Authorised Dealer.
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Annex II
Sr. Existing Directions Revised/Additional Directions
No.
Para (i) of Part E shall be substituted.
(i) The Head/Principal Office of each The Head/Principal Office of each
AD Category-I banks should Authorised Dealer should submit daily
submit daily statements of statements of Foreign Exchange
Foreign Exchange Turnover in Turnover in Form FTD and Gaps, Position
Form FTD and Gaps, Position and Cash Balances in Form GPB through
and Cash Balances in Form GPB the Centralised Information Management
through the Online Returns Filing System (CIMS) as per the format given in
System (ORFS) as per the format Annex-II by the following working day.
given in Annex-II.
Para (iv) of Part E shall be substituted.
(ii) AD Category-I banks should Authorised Dealers should forward details
forward details of exposures in of exposures in foreign exchange as at the
foreign exchange as at the end of end of every quarter as per the format
every quarter as per the format given in Annex-V through CIMS by the 30th
given in Annex-V. ADs should of the month following the end of the
submit this report as per the quarter. Please note that details of
revised format online only from exposures of all corporate clients who
quarter ended September 2013 meet the prescribed criteria have to be
through the Extensible Business included in the report. Authorised Dealers
Reporting Language (XBRL) should submit this report based on their
system which may be accessed own books and not based on corporate
at returns.
https://secweb.rbi.org.in/orfsxbrl/.
AD Category – I banks which
require login ID / passwords for
accessing XBRL system may
submit their e-mail addresses
and contact numbers to
[email protected]. Please note
that details of exposures of all
corporate clients who meet the
prescribed criteria have to be
included in the report. The AD
banks should submit this report
based on bank's books and not
based on corporate returns.
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Para (v) of Part E shall be substituted.
(iii) Authorised Dealers Category I Authorised Dealers should forward details
should forward details of option of option transactions (FCY-INR)
transactions (FCY-INR) undertaken on a weekly basis as per the
undertaken on a weekly basis as format given in Annex VIII through CIMS /
per the format given in Annex email by the first working day of the
VIII. The report may also be following week.
forwarded by e-mail so as to
reach the Department by the 10th
of the following month.
Para (vi) of Part E shall be substituted.
(iv) AD Category-I banks have to vi) Authorised Dealers have to report their
report their total outstanding total outstanding foreign currency
foreign currency borrowings borrowings under all categories as on the
under all categories as on the last last working day of every month as per the
Friday of every month as per the format given in Annex-IX through CIMS by
format given in Annex-IX. The 10th of the following month.
report should be received by the
10th of the following month. The
report may also be forwarded by
e-mail so as to reach the
Department by the 10th of the
following month.
Para (x) of Part E shall be substituted.
(v) The Head/Principal Office of each The Head/Principal Office of each AD
AD Category-I banks should Category I banks should furnish an up-to-
furnish an up-to-date list (in date list of all its offices/branches, which
triplicate) of all its are maintaining Rupee accounts of non-
offices/branches, which are resident banks as at the end of December
maintaining Rupee accounts of every year giving their code numbers
non-resident banks as at the end allotted by Reserve Bank through CIMS /
of December every year giving email by 15th January of the following year.
their code numbers allotted by The offices/branches should be classified
Reserve Bank. The list should be according to area of jurisdiction of Reserve
submitted before 15th January of Bank Offices within which they are
the following year. The situated.
offices/branches should be
classified according to area of
jurisdiction of Reserve Bank
Offices within which they are
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situated. The report may also be
forwarded by e-mail so as to
reach the Department by the 10th
of the following month.
Para (xiii) of Part E shall be substituted.
(vi) Authorised Dealers should Authorised Dealers should report on a
report on a quarterly basis, quarterly basis, doubtful transactions
doubtful transactions involving involving frequent cancellation of hedge
frequent cancellation of hedge transactions and / or the underlying trade
transactions and / or the transactions by non-residents under the
underlying trade transactions by scheme as per the format indicated in the
non-residents under the scheme Annex XX through CIMS by the 10th of the
as per the format indicated in the month following the end of the quarter.
Annex XX. The report may also
be forwarded by e-mail so as to
reach the Department by the
10th of the following month.
Existing para of Part E shall be removed.
(vii) Reports are to be sent to The -
Chief General Manager,
Financial Markets Regulation
Department Reserve Bank of
India, Central Office, 9th Floor,
Central Office Building, Shahid
Bhagat Singh Road, Fort,
Mumbai - 400 001 unless
otherwise specified. Reports may
be sent preferably through e-mail
New para shall be inserted after Para A of Part E
(viii) - B. REPORTING TO THE TRADE
REPOSITORY
(i) Authorised Dealers should report all
OTC foreign exchange derivative contracts
and foreign currency interest rate
derivative contracts, undertaken by them
directly or through their overseas entities 1
1
In case of foreign banks operating in India, through any branch of the parent bank.
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(including overseas branches, IFSC
Banking Units, wholly owned subsidiaries
and joint ventures of Authorised Dealers),
to the Trade Repository (TR) of Clearing
Corporation of India Ltd. (CCIL) as per the
following timelines:
a) Inter-bank foreign exchange
derivative contracts involving INR
(except currency swaps and
structured derivatives) should be
reported in hourly batches within 30
minutes from completion of the
hour. Such contracts executed 30
minutes prior to closure of CCIL’s
reporting platform for the day and
subsequent to closure of CCIL’s
reporting platform for the day should
be reported by 10 a.m of the
following business day;
b) Inter-bank foreign exchange
derivative contracts not involving
INR (except currency swaps and
structured derivatives) executed up
to 5 p.m. on any given day should
be reported by 05:30 p.m of that
day. Such contracts executed after
5 p.m should be reported by 10 a.m
of the following business day;
c) Inter-bank currency swaps,
structured derivatives and foreign
currency interest rate derivative
contracts executed upto 5 p.m. on
any given day should be reported
before closure of CCIL’s reporting
platform for the day. Such contracts
executed after 5 p.m should be
reported by 10 a.m of the following
business day; and
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d) Foreign exchange derivative
contracts and foreign currency
interest rate derivative contracts
executed with clients should be
reported before 12 noon of the
following business day.
Note: For the purpose of (a) (b) and (c),
structured derivative shall have the
meaning as assigned in the Master
Direction – Reserve Bank of India (Market-
makers in OTC Derivatives) Directions,
2021 dated September 16, 2021, as
amended from time to time.
(ii) Under the ‘back-to-back’ arrangement,
trade details, including particulars of the
non–resident client should be reported to
the TR.
(iii) There shall be no requirement of
matching transactions with overseas
counterparties and client transactions in
the TR as the overseas counterparties and
clients are not required to report/confirm
the transaction details. Authorised Dealers
shall be responsible for ensuring the
accuracy in respect of transactions
reported.
(iv) Authorised Dealers should ensure that
outstanding balances between their books
and the TR are reconciled on an ongoing
basis.
(v) The reporting formats shall be as
indicated by CCIL with the prior approval of
the Reserve Bank.
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