What changed
RBI now mandates reporting of all OTC gold derivative transactions by banks and their eligible customers to CCIL's trade repository, effective February 1, 2025. Banks must also submit a one-time report of matured and outstanding OTC gold derivatives from April 15, 2024 by February 28, 2025. Additionally, a quarterly report on exchange-traded gold derivatives in IFSC and overseas is required from the quarter ending December 31, 2024.
What it means for you
Banks need to set up systems to capture and report OTC gold derivative trades to CCIL before 12:00 noon of the following business day. The one-time historical data dump requires pulling records from April 15, 2024 onwards. Quarterly reporting adds another compliance layer for exchange-traded gold derivatives in IFSC and overseas. These directions are issued under the RBI Act, FEMA, and Banking Regulation Act.
What you must do
- Ensure your systems can report all OTC gold derivative trades (domestic, IFSC, overseas) to CCIL's trade repository by noon the next business day from Feb 1, 2025.
- Compile and report all matured and outstanding OTC gold derivative transactions from April 15, 2024 to CCIL by February 28, 2025.
- Prepare and submit the first quarterly report on exchange-traded gold derivatives in IFSC and overseas for the quarter ending December 31, 2024 within 10 days of quarter end.
- Coordinate with CCIL to understand the approved reporting formats and ensure your data submission aligns with them.
- Review existing gold derivative contracts and customer documentation to ensure compliance with the reporting mandate.
Who it affects
All Authorised Dealer Category-I Banks, Banks dealing in gold derivatives in domestic markets, IFSC, and overseas, Eligible customers/constituents of banks who undertake gold derivative transactions, Clearing Corporation of India Ltd. (CCIL) as the trade repository
What is the deadline for reporting OTC gold derivative transactions to CCIL?
All OTC gold derivative transactions must be reported to CCIL's trade repository before 12:00 noon of the following business day, effective from February 1, 2025.
Do we need to report historical gold derivative transactions?
Yes, as a one-time measure, banks must report all matured and outstanding OTC gold derivative transactions from April 15, 2024 to CCIL by February 28, 2025.
What about exchange-traded gold derivatives?
Banks must submit a quarterly report on exchange-traded gold derivatives in IFSC and overseas (including those by eligible customers) to RBI within 10 days of the succeeding quarter, starting from the quarter ending December 31, 2024.