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

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

Reserve Bank of India (RBI) has released a draft circular proposing the introduction of a Unique Transaction Identifier (UTI) for Over-the-Counter (OTC) derivative transactions in India.

The draft circular has been uploaded on the RBI’s official website, and feedback from banks, market participants, and other stakeholders has been invited by November 14, 2025.

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Suggestions can be sent to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, Central Office Building, Fort, Mumbai – 400001, or via email with the subject line “Feedback on Draft Circular on Unique Transaction Identifier for OTC Derivative Transactions in India.”

According to the RBI, the Unique Transaction Identifier (UTI) is a globally recognized data element used for reporting OTC derivative transactions. It works alongside the Legal Entity Identifier (LEI) — while the LEI identifies the parties involved in a transaction, the UTI provides a single, unique reference number for that transaction.

The purpose of introducing UTI is to help regulators and policymakers gain a complete view of the OTC derivatives market by allowing the global aggregation of transaction data.

The RBI highlighted that the reporting of LEI is already mandatory in India, aligning with global standards. The implementation of UTI will be the next step to further strengthen transparency and monitoring in India’s financial markets.