Core Viewpoint - The Reserve Bank of India (RBI) has mandated the use of Legal Entity Identifier (LEI) and Unique Transaction Identifier (UTI) to enhance transparency in financial markets, applicable to various financial transactions [8]. Group 1: Legal Entity Identifier (LEI) - LEI is a 20-character unique identity code assigned to entities involved in financial transactions, applicable to all OTC transactions by entities other than individuals in government securities, money market instruments, foreign exchange instruments, and derivatives [8]. - For non-derivative foreign exchange transactions, the LEI code applies only to transactions involving amounts of USD one million or more or equivalent in other currencies [2]. Group 2: Unique Transaction Identifier (UTI) - UTI is a unique identifier assigned to OTC derivative transactions, which must be generated or reported for all transactions in the OTC derivatives market as per the governing directions [3][6]. - The UTI must be generated in accordance with the UTI Technical Guidance issued by CPMI-IOSCO, consisting of a maximum of 52 characters, including the LEI of the generating entity followed by a unique identifier [7]. - The UTI directions will come into effect on January 01, 2027, while the LEI directions are effective immediately [8].

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].