RBI mandates unique transaction identifier for all OTC derivatives from 2027

Core Viewpoint - The Reserve Bank of India (RBI) has finalized guidelines mandating the use of a Unique Transaction Identifier (UTI) for all over-the-counter (OTC) derivative transactions, effective from January 1, 2027, extending the initial proposed date of April 1, 2026, to allow market participants adequate time to develop necessary technical capabilities [1][3]. Group 1 - UTI is recognized globally as a crucial data element for reporting OTC derivative transactions, aimed at providing policymakers with a comprehensive view of the OTC derivatives market [2]. - Currently, all transactions in 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) [3]. - The RBI has decided to mandate UTI for the aforementioned transactions and has issued a framework for its implementation in OTC derivative transactions [3].