RBI Expands Forex Reporting Requirements To Include Spot Deals

The Reserve Bank of India on Friday said it has decided to expand the reporting requirement of forex transactions and include foreign exchange spot deals to ensure completeness of transaction data in the trade repository (TR) of the Clearing Corporation of India Ltd.

Currently, authorised dealers report all over-the-counter (OTC) foreign exchange derivative contracts and foreign currency interest rate derivative contracts undertaken by them directly or through their overseas entities to the TR of Clearing Corporation of India.

"To ensure completeness of transaction data in TR for all foreign exchange instruments, it has been decided to expand the reporting requirement to include foreign exchange spot (including value cash and value TOM) deals in a phased manner," the RBI said in a circular.

Accordingly, transactions in foreign exchange cash; foreign exchange tom; and foreign exchange spot, involving the rupee or otherwise shall now be reported to the TR, it said.

However, money-changing transactions are not in the scope of the latest directions.

Authorised dealers have been asked to report all inter-bank foreign exchange contracts undertaken by them to the TR of CCIL with effect from Feb. 10, 2025, as per defined timelines.

The RBI also said there would be no requirement to match 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.

An authorised dealer would be responsible for ensuring the accuracy with respect to transactions reported.