RBI Master Direction on Non-Centrally Cleared OTC Derivatives (NCCD) I Hindi I 2024

RBI Master Direction on Non-Centrally Cleared OTC Derivatives (NCCD) I Hindi I 2024
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Master Direction - Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions, 2024
RBI in its Statement on Developmental and Regulatory Policies dated February 6, 2020 had announced that the RBI will issue the directions regarding exchange of Variation Margin and Initial Margin for non-centrally cleared OTC derivatives, and with a view to improve safety of settlement of over-the-counter (OTC) derivatives that are not centrally cleared.
Accordingly, the Master Direction - Reserve Bank of India (Variation Margin) Directions, 2022 was issued on June 01, 2022 and the draft Directions prescribing guidelines for exchange of initial margin for NCCDs were issued on June 16, 2022.
Based on the feedback received from the market participants, the draft Directions have since been finalised. The Master Direction - Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions, 2024 is enclosed herewith.
These Directions have been issued in exercise of the powers conferred under Section 45W of the Reserve Bank of India Act, 1934 and Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and of all the powers enabling it in this behalf.
These Directions shall be called the Master Direction - Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions, 2024. These Directions shall come into force on November 08, 2024.
Applicability
The provisions of these Directions shall apply to the following contracts, which are entered into on or after the date on which these Directions come into force:
Non-centrally cleared foreign exchange derivative contracts
Non-centrally cleared interest rate derivative contracts
Non-centrally cleared credit derivative contracts
Any other non-centrally cleared derivative (NCCD) contract as may be specified by the Reserve Bank.
Entity scope
Covered Entities for exchange of Variation Margin
The following entities shall be classified as Domestic Covered Entities for exchange of Variation Margin (hereafter known as Domestic Covered Entities - VM) under these Directions:
a) Entities regulated by a financial sector regulator (including branches of foreign banks operating in India) and having an Average Aggregate Notional Amount (AANA) of outstanding NCCDs of ₹ 25,000 crore and above, on a consolidated group wide basis.
b) Other resident entities having an AANA of outstanding NCCDs of ₹ 60,000 crore and above, on a consolidated group wide basis.

[@jyotsnachikhale1]

Madam
Please areange to upload MCQs for December 2023 and January 2024.
Regards

[@ManishKumar-js7bo]

I would request plz underline the point while explaining and draw a example

[@unvssriram7258]

Thanks mam from bringing lecture

[@DecodeIndian]

You're welcome

[@jyotsnachikhale1]

When will MCQ for May 2024 circulars will be uploaded

[@DecodeIndian]

it is now uploaded

[@unvssriram7258]

Mam. One request, please use atleast minimum english during explanation

[@DecodeIndian]

will try to do so

[@NareshKumar-lf4qk]

​@@DecodeIndianEnglish me padhne wale dusra channel prefer kar sakte hain ... continue in hindi

[@jyotsnachikhale1]

Madam how to connect with you

[@DecodeIndian]

Kindly mail us at [e-mail]

[@mohitarya4727]

mam how to connect you?

[@DecodeIndian]

you can mail at [e-mail]

[@mohitarya4727]

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[@DecodeIndian]

will reply you soon there once I get free

[@mohitarya4727]

Mam kindly check your email