What new rules has the Reserve Bank of India introduced for derivatives?

The RBI has released master directions permitting residents and non-residents to transact in interest-rate derivatives using rupees.

Can non-residents participate in Indian rupee derivatives?

Yes, non-residents can now participate in rupee interest-rate derivative transactions through authorized channels.

How can foreign investors trade derivatives in India?

Foreign investors can trade rupee interest-rate derivatives via their central treasury or an authorized group entity, subject to specified limits.

Home / Business and Economy / RBI Opens Door to Global Rupee Derivatives

RBI Opens Door to Global Rupee Derivatives

9 Dec, 2025

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Summary

RBI released master directions allowing rupee derivative transactions.
Both residents and non-residents can now participate.
Non-residents may trade via authorized central treasury or group entities.

The Reserve Bank of India has unveiled new master directions that permit both resident and non-resident entities to conduct interest-rate derivative (IRD) transactions denominated in rupees. This significant policy update outlines the eligibility criteria for participants, the procedures for introducing new derivative products, and specific investment limits for foreign investors.

The revised guidelines aim to enhance liquidity and participation in India's financial markets. Non-residents will be able to engage in these transactions either directly through their authorized central treasury operations or indirectly via a group entity that has been duly empowered to act on their behalf.

These directions signify a proactive step by the RBI to deepen the derivatives market and integrate it further with global financial flows. The framework clarifies operational aspects, ensuring compliance and providing a structured environment for international players interested in Indian rupee-denominated instruments.

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