Master Direction - Reserve Bank of India (Unique Identifiers in Financial Markets) Directions, 2026
UR
- Applies toAll regulated entities
- StatusIn force from 1 January 2027
- IssuedMar 27, 2026
- Amendmentsnone tracked
- Length28 points in 4 sections · 3 min read
The four dates on this rule
- PublishedMar 27, 2026The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyMar 27, 2026The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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26 of the 28 points name no product and bind every product. All products.
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
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.