The Reserve Bank of India (RBI) has issued new guidelines mandating the reporting of gold derivative transactions by Authorized Dealer Category-I Banks to the Clearing Corporation of India Ltd. (CCIL) trade repository. Starting February 1, 2025, all over-the-counter (OTC) transactions in gold derivatives conducted by banks and their eligible customers in domestic markets, International Financial Services Centres (IFSC), or overseas must be reported to the trade repository. Reports must be submitted by noon on the next business day, including amendments and unwinding of transactions. Additionally, banks are required to retrospectively report all matured and outstanding transactions from April 15, 2024, to February 28, 2025, ensuring data completeness. Banks must also provide quarterly reports on gold derivatives traded in IFSC and overseas exchanges within ten days of the quarter’s end. Reporting formats will be determined by CCIL with RBI approval. The directions are issued under the Reserve Bank of India Act, Foreign Exchange Management Act, and Banking Regulation Act.
Reserve Bank of India
RBI/2024-25/98
FMRD.FMD.No.08/02.03.185/2024-25 | Dated: December 27, 2024
To
All Authorised Dealer Category-I Banks
Madam/Sir,
Reporting Platform for transactions undertaken to hedge price risk of gold
Attention of Authorised Dealer Category-I Banks is invited to the following Directions issued by the Reserve Bank and as amended from time to time:
a. DBOD.No.IBS.817/23.67.001/2002-03 dated October 26, 2002 on Sale of Gold/Silver/Platinum – Forward Contract;
b. Master Direction No.DBR.IBD.No.45/23.67.003/2015-16 dated October 22, 2015 on Gold Monetization Scheme, 2015;
c. Master Direction – Risk Management and Inter-Bank Dealings, vide FMRD Master Direction No. 1/2016-17 dated July 05, 2016; and
d. Master Direction – Foreign Exchange Management (Hedging of Commodity Price Risk and Freight Risk in Overseas Markets) Directions, 2022, vide A. P. (DIR Series) Circular No. 20 dated December 12, 2022.
2. It has been decided to mandate reporting of transactions in gold derivatives undertaken by banks and their customers / constituents as under:
a. Banks shall report all over-the-counter (OTC) transactions in gold derivatives undertaken by them in terms of the aforesaid regulations in domestic markets, International Financial Services Centre (IFSC) and outside India to the trade repository (TR) of Clearing Corporation of India Ltd. (CCIL) with effect from February 01, 2025.
b. Banks shall report all OTC transactions in gold derivatives undertaken in terms of the aforesaid regulations by their eligible customers / constituents in domestic markets and IFSC to the TR with effect from February 01, 2025.
c. Banks shall report all the aforesaid transactions undertaken by them or their eligible customers / constituents to the TR before 12:00 noon of the following business day.
d. Banks shall report all amendments and unwinding of the transactions undertaken in accordance with the aforesaid regulations to the TR.
e. The reporting formats shall be as indicated by CCIL with the prior approval of the Reserve Bank.
3. As a one-time measure, to ensure completeness of data, banks shall report all matured and outstanding OTC transactions in gold derivatives undertaken in terms of the aforesaid regulations by them in the domestic markets, IFSC and outside India and transactions undertaken by their eligible customers / constituents in domestic markets and IFSC from April 15, 2024 to the TR by February 28, 2025.
4. Banks shall submit a quarterly report on transactions in gold derivative undertaken by them at exchanges in IFSC and overseas and by their eligible customers/constituents at exchanges in IFSC to the Reserve Bank in the format set out in the Annex within ten days of the succeeding quarter, commencing from the quarter ending December 31, 2024.
5. These directions are issued under the powers vested in the Reserve Bank of India under Section 45W of the Reserve Bank of India Act, 1934, Sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999 and Section 35A of the Banking Regulation Act, 1949, and are without prejudice to permissions/ approvals, if any, required under any other law.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
