The Reserve Bank of India (RBI) on Wednesday released a draft circular proposing the mandatory use of Unique Transaction Identifiers (UTIs) for all over-the-counter
(OTC) derivative transactions in India, effective from April 1, 2026.
The proposal aims to enhance transparency and enable better monitoring of OTC markets, covering Rupee interest rate derivatives, forward contracts in government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives.
Stakeholders, including banks and market participants, have been invited to submit comments on the draft guidelines by 14 November 2025.
The RBI said the introduction of UTIs aligns India’s regulatory framework with global best practices. UTIs are among the key data elements internationally adopted for OTC derivatives reporting, alongside the Legal Entity Identifier (LEI).
While the LEI identifies the counterparties to a trade, the UTI serves as a unique reference number for each transaction, helping policymakers obtain a comprehensive view of global OTC derivatives activity through aggregated reporting.
Most major jurisdictions have already implemented or are in the process of implementing UTIs, with India having earlier rolled out LEI requirements for OTC derivative reporting.
