The Reserve Bank of India (RBI) on February 21, 2025, issued a notification regarding the Master Direction – Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions, 2024.
In reference to Paragraph 10 of the Statement on Developmental and Regulatory Policies from the Bi-monthly Monetary Policy Statement for 2019-20 dated February 06, 2020, has issued the Master Direction – Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions, 2024. This follows the issuance of the Master Direction – Reserve Bank of India (Variation Margin) Directions, 2022, and subsequent draft guidelines for the exchange of initial margin for non-centrally cleared derivatives (NCCDs) released on June 16, 2022. The finalized Directions incorporate feedback from market participants and have been issued under the powers conferred by Section 45W of the Reserve Bank of India Act, 1934, and Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999), to provide regulatory clarity on margining requirements.
[Notification No. RBI/FMRD/2024-25/117]
