Page 56 - Banking Finance April 2020

RBI CIRCULAR

(42 of 1999) and are without prejudice to permissions/ all OTC foreign exchange, interest rate and credit
approvals, if any, required under any other law. derivative transactions - both interbank and client
transactions - undertaken by them to CCIL’s reporting
(Dimple Bhandia) platform with effect from June 1, 2020. Additionally,
General Manager-in-Charge as a one-time measure to ensure completeness of data,
all matured and outstanding transactions as on May
Reporting Platform for OTC Derivatives – 31, 2020, shall be reported by July 31, 2020.
Transactions undertaken by IFSC Banking 5. The Clearing Corporation of India (CCIL) shall
communicate the methodology of such reporting to its
Units (IBUs) and non-deliverable members.
derivative contracts (involving Rupee or 6. These directions are issued under the powers vested in

otherwise) the Reserve Bank of India under Section 45W of the
Reserve Bank of India Act, 1934 and is without
RBI/2019-20/233 prejudice to permissions/ approvals, if any, required
May 18, 2020 under any other law.

1. In terms of A.P. (DIR Series) circular no.23 dated March (Dimple Bhandia)
27, 2020, banks in India having an Authorised Dealer General Manager (O-i-C)
Category-1 license under FEMA, 1999, and operating
IBUs have been permitted, with effect from June 1, Banking Promotional Exam sample questions-
2020, to offer non-deliverable derivative contracts Series 20
(NDDCs) involving the Rupee, or otherwise, to persons
not resident in India. Banks can undertake such 1. (d) Kolkata, West Bengal
transactions through their IBUs or through their 2. (a) Paytm
branches in India or through their foreign branches (in 3. (c) Mohammed Tawfiq Allawi
case of foreign banks operating in India, through any 4. (e) Vinod Kumar Shukla
branch of the parent bank). 5. (d) Maldives
2. All foreign exchange non-deliverable derivative 6. (b) Waheeda Rehman
contracts (involving Rupee or otherwise) undertaken by 7. (d) Ajay Bisaria
banks in India through their IBUs or through their 8. (b) Pakistan
branches in India or through their foreign branches (in 9. (d) Shaktikanta Das
case of foreign banks operating in India, through any 10. (e) 4th February
branch of the parent bank), shall be reported to CCIL’s 11. b) Lucknow, Uttar Pradesh
reporting platform with effect from June 1, 2020.
12. (d) M Ajit Kumar
3. Further, in terms of circular no. DBR.IBD.BC.14570/ 13. (a) Rudra Pratap Singh
23.13.004/2014-15 dated April 01, 2015, as amended 14. (e) Joaquin Phoenix
from time to time, IBUs were permitted to undertake 15. (b) I Am and I Will
derivative transactions including structured products 16. (d) India: the emerging defence manufacturing hub
that the banks operating in India have been allowed 17. (b) Patricia Scotland
to undertake as per the extant RBI directions. For 18. (c) 1917
undertaking any other derivative product, IBUs are 19. (e) Renee Zellweger
required to obtain the prior approval of the RBI.
20. (c) Janak Raj
4. RBI has mandated that all OTC foreign exchange, 21. (c) Rani Rampal
interest rate and credit derivative transactions, both
22. (e) 1-million USD
inter-bank and client, will be reported to CCIL’s trade 23. (d Sanjana Kapoor
reporting platform. The matter has been further
discussed with banks operating IBUs and CCIL. 24. (c) Eimear Noone
Accordingly, it has been decided that IBUs shall report 25. (d Sampriti

54 | 2020 | APRIL | BANKING FINANCE