Reserve Bank of India (RBI) mandates Unique Transaction Identifier (UTI) for OTC derivatives

Key facts

• The Reserve Bank of India (RBI) has mandated the use of a Unique Transaction Identifier (UTI) for all Over-the-Counter (OTC) derivative transactions to improve traceability and systemic risk monitoring.
• The new framework for UTI implementation is scheduled to become applicable from 1 January 2027.
• The mandate covers Foreign Exchange (FX) derivatives (forwards and swaps), Rupee interest rate derivatives (overnight index swaps and MIBOR-linked swaps), forward contracts in government securities, and credit derivatives.
• The Clearing Corporation of India (CCIL) is expected to issue detailed operational guidelines for the implementation of the UTI framework in due course.
• Responsibility for generating the UTI will follow a waterfall mechanism, starting with central counterparties or electronic trading platforms, and falling back on the trade repository of the CCIL.
• Routine amendments to derivative contracts will not require a new UTI, but lifecycle events such as novations that create a new reportable trade will trigger fresh identifiers.
• The RBI had previously issued a draft regarding the UTI requirement in October 2025.