RBI tightens offshore rupee oversight with new FX reporting rules.

RBI tightens offshore rupee oversight with new FX reporting rules. The Reserve Bank of India has directed authorised bank dealers to report over-the-counter FX derivative contracts involving the rupee, both deliverable and non-deliverable. This move aims to bring offshore rupee activity under regulatory scrutiny and curb speculative trading that has caused volatility in domestic markets. The staggered rollout begins July 2027 with full compliance required by July 2028, giving banks time to build necessary systems. Banks must report transaction-level details to CCIL's trade repository, including notional amounts, counterparties, maturity dates, and contract specifications. Trades below one million dollars are excluded from mandatory reporting.