The Reserve Bank of India (RBI) on September 22, 2026, notified the Novation of OTC Derivative Contracts.
The following has been stated:
• The RBI has finalised instructions on the novation of OTC derivative contracts after considering feedback received on the draft Directions issued on July 9, 2025. Instead of issuing separate instructions, RBI has incorporated the finalised provisions into the respective regulatory directions governing OTC foreign exchange, interest rate, government securities and credit derivative contracts, with a view to consolidating the applicable instructions.
• The provisions have been incorporated into the Master Direction – Risk Management and Inter-Bank Dealings, RBI (Rupee Interest Rate Derivatives) Directions, 2025, RBI (Forward Contracts in Government Securities) Directions, 2025, and RBI (Credit Derivatives) Directions, 2026. The instructions apply to any novation undertaken on or after the date of issue.
[Notification No. - RBI/2026-27/263 FMRD.DIRD.No.04/14.03.066/2026-27]
