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RBI Opens Door to Global Rupee Derivatives
9 Dec, 2025
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.
