RBI proposes new regulations for rupee interest rate derivatives
The Reserve Bank of India (RBI) is looking to refresh its rules for Rupee Interest Rate Derivatives (IRD)—basically, financial tools that help manage interest rate risks.
The current guidelines haven't changed since 2019, but with new products and more global players joining in, RBI thinks it's time for an upgrade.
They're asking for feedback from the market until July 7, 2025.
Key highlights of draft rules
The draft rules would let non-residents join IRD deals through their main offices or group companies, as long as they're authorized.
Reporting requirements are set to get simpler—meaning less paperwork—and there's a push for more global transparency in how these deals are reported.
All this is meant to make the market more modern, attract fresh investment, and keep things above board.
RBI aims to make India's financial markets clearer, more trustworthy
At the heart of these changes is RBI's aim to make India's financial markets clearer and easier to trust.
By updating old rules and inviting public input, they're showing they want a system that works better for everyone—especially as the market keeps evolving.