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RBI mandates standardised IRS contracts from April 2013

Current · Source: Reserve Bank of India · RBI/2012-13/396 · issued 28 Jan 2013 · ~1 min read
Quick answerRBI has mandated standardisation of INR MIBOR-OIS contracts from April 1, 2013, to improve tradability and enable future central clearing. FIMMDA will prescribe minimum notional, tenors, trading hours, and settlement rules. Client trades are exempt.
The rule, in the simplest words
How it plays out — a real example

A payments & clearing officer in Indore, Mr. Kumar, ensures that all new INR MIBOR-OIS contracts executed from April 1, 2013, adhere to FIMMDA-prescribed standardisation norms. He reviews and updates internal systems and documentation to handle standardised contract terms for non-client trades, which will improve tradability and enable future central clearing.

What changed

RBI directed that all new INR MIBOR-Overnight Index Swap (OIS) contracts executed from April 1, 2013, must be standardised. Standardisation covers minimum notional principal, tenors, trading hours, and settlement calculations, as prescribed by FIMMDA in consultation with market participants. The requirement is mandatory for all IRS contracts except client trades.

What it means for you

Banks and market participants must align their INR MIBOR-OIS contracts to FIMMDA-prescribed standards, reducing contract heterogeneity. This paves the way for central clearing and settlement, lowering counterparty risk and improving liquidity. Non-client trades will face compliance costs, but the move enhances market efficiency and transparency.

What you must do

Who it affects

All market participants dealing in INR MIBOR-OIS contracts, Banks and financial institutions active in interest rate derivatives, FIMMDA and clearing corporations

❓ Common questions

Which contracts are subject to mandatory standardisation?

All new INR MIBOR-OIS contracts executed from April 1, 2013, must be standardised. Client trades are exempt from this requirement.

Who will prescribe the standardisation parameters?

FIMMDA, in consultation with market participants, will prescribe the minimum notional principal amount, tenors, trading hours, and settlement calculations.

What is the objective behind this standardisation?

To improve tradability and facilitate future centralised clearing and settlement of IRS contracts, thereby reducing counterparty risk and enhancing market efficiency.

📜 Read the original circular — full text as issued by RBI
RBI/2012-13/396 IDMD.PCD.2191/14.03.01/2012-13 January 28, 2013 All Market Participants Madam/Sir, Standardisation of Interest Rate Swap (IRS) Contracts A reference is invited to RBI circular Ref.No.MPD.BC.187/07.01.279/1999-2000 dated July 7, 1999 . 2. To improve tradability and facilitate centralized clearing and settlement of IRS contracts in future, it has been decided to standardise IRS contracts. 3. The standardisation of IRS contracts shall be achieved in terms of minimum notional principal amount, tenors, trading hours, settlement calculations etc. which will be prescribed by FIMMDA in consultation with the market participants. To begin with, standardisation shall be mandatory for INR Mumbai Inter Bank Offer Rate (MIBOR)- Overnight Index Swap (OIS) contracts. The standardisation requirement shall be mandatory for all IRS contracts other than client trades. 4. All new INR MIBOR-OIS contracts executed from April 1, 2013 onwards shall be standardised. (K.K Vohra) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/396 · issued 28 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Coordinate with FIMMDA and market participants to align on minimum notional, tenors, trading hours, and settlement calculations.
💻 IT / Systems
  • Review and update internal systems and documentation to handle standardised contract terms for non-client trades.
📜 Compliance
  • Ensure all new INR MIBOR-OIS contracts from April 1, 2013, adhere to FIMMDA-prescribed standardisation norms.
  • Exempt client trades from standardisation but maintain clear internal policies to distinguish client vs. non-client trades.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All market participants dealing in INR MIBOR-OIS contracts, Banks and financial institutions active in interest rate derivatives, FIMMDA and clearing corporations), your first concrete step on “RBI mandates standardised IRS contracts from April 2013” is: “Ensure all new INR MIBOR-OIS contracts from April 1, 2013, adhere to FIMMDA-prescribed standardisation norms.” (RBI issued this 28 Jan 2013).

  1. Circular: RBI/2012-13/396 -- RBI mandates standardised IRS contracts from April 2013
  2. Issued: 28 Jan 2013
  3. Action required: Ensure all new INR MIBOR-OIS contracts from April 1, 2013, adhere to FIMMDA-prescribed standardisation norms.
  4. Action required: Review and update internal systems and documentation to handle standardised contract terms for non-client trades.
  5. Action required: Coordinate with FIMMDA and market participants to align on minimum notional, tenors, trading hours, and settlement calculations.
  6. Action required: Exempt client trades from standardisation but maintain clear internal policies to distinguish client vs. non-client trades.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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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=7828&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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