RBI will require UTI for all OTC derivative transactions from January 1, 2027

The Unique Transaction Identifier (UTI) will become mandatory for all direct retail transactions in rupee interest rate and foreign currency derivatives from January 1, 2027, the Reserve Bank said on Wednesday.The UTI is conceived as one of the key data elements identified globally for reporting over-the-counter (OTC) derivatives transactions, with the aim of enabling policy makers to gain a comprehensive view of the OTC derivatives market.

Currently, all transactions in over-the-counter (OTC) markets for rupee interest rate derivatives, forward contracts in government securities, foreign currency derivatives, foreign currency interest rate derivatives and credit derivatives are reported to the trade repository managed by Clearing Corporation of India Limited (CCIL-TR).

“It has now been decided to make UTI mandatory for all such transactions,” the RBI said in a circular.

The instructions will come into effect from January 1, 2027.

The instructions apply to OTC derivative transactions entered into on or after the date on which the instructions become effective.

A UTI consists of a maximum of 52 characters and consists of the Legal Entity Identifier (LEI) of the generating entity, followed by a unique identifier.

The RBI had earlier proposed to roll out the UTI mandate from April 1, but deferred it to January 1, 2027 to give market participants enough time to build the necessary technical capabilities.