No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/333 · issued 20 Apr 2007 · ~1 min read
Quick answerRBI issued comprehensive guidelines on derivatives for banks, based on an internal group review and public feedback. These replace earlier piecemeal instructions, covering all derivative activities except foreign exchange derivatives, which will be addressed separately.
What changed
RBI released a consolidated set of guidelines on derivatives, replacing previous fragmented instructions. The guidelines were developed after an internal group review and public consultation, with revisions based on feedback from banks and market participants.
What it means for you
Banks must now align their derivative operations with these unified guidelines, ensuring consistency and risk management. The separate treatment of foreign exchange derivatives means banks need to prepare for additional rules in that area. This move aims to strengthen oversight and reduce systemic risk in derivative markets.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review the annexed comprehensive guidelines and update internal derivative policies accordingly.
Ensure all derivative transactions comply with the new framework, excluding foreign exchange derivatives until separate guidelines are issued.
Train relevant staff on the revised guidelines to ensure proper implementation and risk management.
Monitor RBI announcements for the forthcoming foreign exchange derivative guidelines.
Who it affects
All commercial banks (excluding RRBs), All India term-lending and refinancing institutions, Primary dealers
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 17:20 IST
Status change: withdrawn10 Jul 2026, 04:05 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the scope of these comprehensive guidelines?
They cover all derivative activities of banks, except foreign exchange derivatives, which will be addressed in a separate circular.
Why were these guidelines issued?
RBI constituted an internal group to review existing guidelines and formulate a comprehensive framework, following the Mid-term Review of the Annual Policy for 2006-07. Public comments were incorporated.
When do these guidelines take effect?
The guidelines were issued on April 20, 2007, and banks are expected to comply from that date onward.
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/333
DBOD.No.BP.BC.
86/21.04.157/2006-07
April
20, 2007
Chairmen/
Chief Executive Officers
All
Commercial Banks (excluding RRBs),
All
India Term-Lending & Refinancing Institutions &
Primary
Dealers
Dear
Sir,
Comprehensive
Guidelines on Derivatives
As
indicated in paragraph
137 of the Mid-term
Review of Annual Policy for year 2006-07 , an Internal Group was constituted
by the Reserve Bank to review the existing guidelines on derivatives and formulate
comprehensive guidelines on derivatives by banks.
2.
Draft comprehensive guidelines on derivatives based on the recommendations of
the Group were placed on the RBI website on December 11, 2006 and were open for
comments from all concerned.
3.
Comments were received from a wide spectrum of banks and other market participants.
The guidelines have been suitably revised in the light of the feedback received
and are furnished in the Annex .
4.
Guidelines in respect of foreign exchange derivatives will be issued separately.
Yours
faithfully,
Prashant
Saran
Chief General
Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/333 · issued 20 Apr 2007. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3432&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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