Current Affairs - Economy - Discussion

The Reserve Bank of India has mandated that a Unique Transaction Identifier (UTI) must be used for all over-the-counter (OTC) derivatives transactions beginning January 1, 2027. This requirement applies to rupee interest rate derivatives, foreign currency derivatives, credit derivatives, and certain government securities contracts. The UTI, a globally recognised tracking code, will uniquely identify each transaction, reduce duplication in reporting, and improve transparency. By introducing this mandate, the RBI aims to strengthen regulatory oversight, enhance systemic risk monitoring, improve data accuracy, and align India’s OTC derivatives reporting framework with global financial market standards.