RBI Mandates Unique Transaction Identifier for OTC Derivatives from January 01, 2027In January 2026, the Reserve Bank of India (RBI) mandated the use of Unique Transaction Identifier (UTI) for all Over-the-Counter (OTC) derivative transactions from January 01, 2027, instead of its previous proposed timeline i.e. from April 01, 2026.
- The new directions related to UTI have been issued by the RBI in exercise of powers given under Section 45W of the RBI Act, 1934 read with Section 45U of the Act and of all powers enabling it in its behalf.
Key Directions:
Adhere to Global Guidance: As per RBI directions, the UTI is required to be generated in line with global guidance issued by Committee on Payments and Market Infrastructures and International Organisation of Securities Commissions.
UTI Structure: The RBI also specified the UTI format can maximum up to 52 characters, including the Legal Entity Identifier (LEI) of the generation entity.
Lifecycle Events: RBI has clarified that modifications to contract details will be considered as updates and will not require generation of new UTI.
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