RBI Issues Draft Circular on Unique Transaction Identifier for OTC Derivative Transactions in India

The article discusses the Reserve Bank of India’s draft circular proposing mandatory implementation of a Unique Transaction Identifier (UTI) for over-the-counter (OTC) derivative trades. The move aims to enhance transparency and regulatory oversight in India’s derivatives market by aligning with G20 and BIS recommendations. It details how UTIs will improve traceability, systemic-risk monitoring, and data reconciliation between counterparties. The article explains implications for banks, financial institutions, and trading platforms — requiring them to update reporting systems and adopt uniform trade-identification standards. It also notes the circular’s alignment with international standards like CPMI-IOSCO’s UTI framework, signalling India’s move toward global interoperability in financial market reporting. The RBI has sought stakeholder feedback before finalising the guidelines.