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Master Direction · Reserve Bank of India

Master Direction - Reserve Bank of India (Unique Identifiers in Financial Markets) Directions, 2026

UR

The four dates on this rule

At a glanceA central counterparty stands between buyer and seller and becomes the counterparty to both. LEI rules cover most trading in government bonds, money markets, foreign exchange and derivatives.

Official RBI page

What it says

Must know

1. LEI rules start immediately

The LEI part of these rules is already in force.

2. UTI rules start 2027

The UTI part of these rules only starts on 1 January 2027.

3. LEI covers market transactions

LEI rules cover most trading in government bonds, money markets, foreign exchange and derivatives.

4. Small FX deals are exempt

For simple foreign exchange deals, LEI is only needed above one million US dollars.

5. No LEI, no trade

Without a valid LEI, an entity cannot trade in these markets at all.

6. UTI covers derivative trades

UTI applies to over-the-counter derivative trades done under RBI's listed rulebooks.

7. A waterfall names the generator

A set order in Table 1 decides which entity generates the UTI first.

8. Novation needs a new UTI

But a novation that creates a fresh contract needs its own new UTI.

Do it

1. Get an LEI code

Every participant covered by this rule must get an LEI code from an accredited agency.

2. Foreign funds may share code

A foreign fund with no separate legal identity may use its manager's LEI code.

3. Record the LEI code

Anyone handling or reporting these trades must record the LEI of every party involved.

4. Keep your LEI current

Every entity must make sure its LEI code has not expired.

5. Generate a UTI every time

A UTI must be generated or reported for every covered derivative trade.

6. Follow the global UTI format

The UTI must follow the 2017 global technical guidance for its format.

7. Five-day grace for cross-border trades

If a foreign deadline is missed, the trade's UTI must still reach CCIL-TR soon after.

8. Put compliance systems in place

Every market participant must have systems in place to follow these rules.

Background

1. What a CCP is

A central counterparty stands between buyer and seller and becomes the counterparty to both.

2. What an OTC market is

An OTC market is any trading done off an exchange, including on electronic platforms.

3. Leftover words follow RBI Act

Any word not defined here takes its meaning from the RBI Act, 1934.

4. What LEI is for

LEI is a 20-character code that identifies each party in a financial deal.

5. Indian agency needs RBI recognition

An LEI-issuing agency based in India must be recognised by RBI under the payments law.

6. What UTI is for

UTI is a unique code given to each derivative trade.

7. RBI can add more later

RBI may bring more kinds of trades under this rule later.

8. Old trades keep old rules

This UTI rule only applies to derivative trades made after these rules start.

9. UTI length is fixed

Each UTI can run up to 52 characters, starting with the generating entity's LEI.

10. Clearing corporation is the backstop

If nobody else assigns a UTI, the clearing corporation generates one itself.

11. Amending a trade keeps UTI

Changing an existing derivative contract does not need a new UTI.

12. CCIL sets the reporting format

CCIL will issue the operating guidelines and formats for UTI reporting.

Where to go next