RBI Expands Forex Reporting Requirements

The Reserve Bank of India has announced an expansion in the reporting requirements for forex transactions, now including foreign exchange spot deals. This change aims to enhance the completeness of transaction data in the Clearing Corporation of India's Trade Repository. Authorized dealers must comply by February 2025.

The Reserve Bank of India (RBI) announced an expansion of reporting requirements for foreign exchange transactions. This new directive, released in a circular on Friday, now includes foreign exchange spot deals, aiming to ensure the completeness of transaction data housed within the Clearing Corporation of India's Trade Repository (TR).

Previously, authorized dealers reported all over-the-counter foreign exchange derivative contracts and foreign currency interest rate derivatives to the TR directly or through their overseas entities. The new directive requires dealers to include foreign exchange cash, foreign exchange tom, and foreign exchange spot deals in their reports, scheduled to take effect in a phased manner starting February 10, 2025.

However, the RBI clarified that money-changing transactions fall outside the scope of these new directions. While the responsibility for accurate reporting falls to authorized dealers, there is no obligation to match transactions with overseas counterparties or clients, as they are not required to report or confirm transaction details.

(With inputs from agencies.)