Repo Accounting: FIMMDA Agreement Not Mandatory for CCP-Settled G-Secs
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/551 · issued 30 May 2011 · ~2 min read
Quick answerRBI clarifies that the FIMMDA Master Repo Agreement is not mandatory for repo transactions in Government Securities settled through a CCP like CCIL, due to existing safeguards. However, it remains mandatory for bilateral repo transactions in Corporate Debt Securities.
The rule, in the simplest words
For Government Securities repos settled through a CCP (like CCIL), you do NOT need a FIMMDA Master Repo Agreement (a special contract) because the CCP already has safety rules like haircuts (extra money kept aside), MTM pricing (daily price updates), margins (security deposits), and dispute resolution.
For Corporate Debt Securities repos that are settled directly between two parties (bilateral), you MUST use the FIMMDA Master Repo Agreement to protect against risks.
Banks and lenders can now do Government Security repos through CCIL with less paperwork and lower costs, since the FIMMDA agreement is not required for those trades.
How it plays out — a real example
A treasury officer in Indore, Priya, processes a repo transaction for Government Securities through CCIL. She checks her bank's updated policy and sees she no longer needs to prepare a separate FIMMDA Master Repo Agreement, saving her an hour of paperwork. She simply confirms the trade details with CCIL, knowing the CCP's built-in safeguards like margins and daily price updates protect the bank from risk.
What changed
RBI clarified that the FIMMDA Master Repo Agreement, previously required for all repo transactions, is not mandatory for Government Securities repos settled through a Central Counter Party (CCP) like CCIL. The CCP's built-in safeguards—such as haircuts, MTM pricing, margins, multilateral netting, and dispute resolution—obviate the need for a separate bilateral agreement. For Corporate Debt Securities settled bilaterally without a CCP, the FIMMDA Master Repo Agreement remains mandatory.
What it means for you
Banks and lenders can now execute repo transactions in Government Securities through CCIL without the administrative burden of a separate FIMMDA Master Repo Agreement, streamlining operations. This reduces documentation costs and legal risks for CCP-settled trades, while reinforcing the need for bilateral agreements in corporate debt repos to manage counterparty risk. The clarification ensures market participants align their repo accounting practices with the risk management framework of CCPs.
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
Update internal repo accounting policies to reflect that FIMMDA Master Repo Agreement is not required for G-Sec repos settled through CCIL.
Ensure all bilateral repo transactions in Corporate Debt Securities continue to use the FIMMDA Master Repo Agreement as mandated.
Review existing repo documentation to identify any unnecessary FIMMDA agreements for CCP-settled G-Sec trades and remove them.
Train treasury and operations teams on the distinction between CCP-settled and bilateral repo documentation requirements.
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Is the FIMMDA Master Repo Agreement mandatory for all repo transactions?
No. It is mandatory only for repo transactions in Corporate Debt Securities settled bilaterally. For Government Securities repos settled through a CCP like CCIL, it is not mandatory due to the CCP's risk management safeguards.
What safeguards does a CCP like CCIL provide that make the FIMMDA agreement unnecessary?
CCIL provides safeguards including haircuts, mark-to-market pricing, margins, multilateral netting, closing out provisions, right to set off, settlement guarantee fund, and dispute resolution mechanisms.
Does this circular change any other terms of the earlier March 2010 circular?
No. All other terms and conditions of the March 2010 circular remain unchanged. Only the clarification on the mandatory nature of the FIMMDA Master Repo Agreement for CCP-settled G-Sec repos is provided.
📜 Read the original circular — full text as issued by RBI
This circular has been superseded by Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 dated July 24, 2018 .
RBI/2010-11/551
IDMD No./29 /11.08.043/2010-11
May 30, 2011
To All RBI regulated entities
(Commercial Banks, Co-operative Banks, Primary Dealers, Financial Institutions, RRBs and NBFCs)
Dear Sir/Madam,
Guidelines for Accounting of Repo / Reverse Repo Transactions-Clarification
Please refer to our circular RBI/2009-2010/356 IDMD/4135/11.08.043/2009-10 dated March 23, 2010 . The para 7 of the circular under reference states that “to obviate the disputes arising out of repo transactions, the participants should enter into bilateral Master Repo Agreement as per the documentation finalized by Fixed Income Money Market and Derivatives Association of India (FIMMDA)”.
2. We have received queries from market participants whether the Master Repo Agreement finalised by FIMMDA is mandatory for repo transactions in Government Securities settled through CCIL. In this regard, it is clarified that the Master Repo Agreement finalised by FIMMDA is not mandatory for repo transactions in Government Securities settling through a Central Counter Party (CCP) [eg. Clearing Corporation of India Limited (CCIL)], having various safeguards like haircut, MTM price, margin, Multilateral netting, closing out, right to set off, settlement guarantee fund/ collaterals, defaults, risk management and dispute resolution/ arbitration etc. However, Master Repo Agreement is mandatory for repo transactions in Corporate Debt Securities, which is settled bilaterally without involving a CCP.
3. All other terms and conditions of the above mentioned circular will remain unchanged.
Yours faithfully,
(K K Vohra)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/551 · issued 30 May 2011. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=6445&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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