RBI Notifies Master Directions – Reserve Bank Of India (Unique Identifiers In Financial Markets) Directions, 2026.

The Reserve Bank of India (“RBI”) by way of notification dated 27.03.2026 notified the Master Directions – RBI (Unique Identifiers in Financial Markets) Directions, 2026 (“UI Directions”)¹. The salient features of the UI Directions are as follows:

1. Commencement: Section A of the UI Directions relating to Legal Entity Identifier (“LEI”) shall come into effect immediately, while Section B relating to Unique Transaction Identifier (“UTI”) shall come into effect from 01.01.2027.
2. LEI:
   1. LEI is a 20-character unique identification code assigned to entities participating in financial transactions.
   2. LEI shall be applicable to all over-the-counter transactions undertaken by entities other than individuals in markets for government securities, money market instruments, foreign exchange instruments and derivatives covered under section 45U of Chapter III-D of the Reserve Bank of India Act, 1934.
   3. In case of non-derivative foreign exchange transactions, LEI shall be applicable only where the transaction amount is equivalent to or exceeds USD one million or equivalent in other currency.
   4. All eligible participants, whether resident or non-resident, are required to obtain an LEI from a Global LEI Foundation-accredited Local Operating Unit (“LOU”) in India, such LOU must be recognised by the Reserve Bank under the Payment and Settlement Systems Act, 2007. Non-residents that are not legal entities in their country of incorporation may use the LEI code of the parent / management company.
   5. Entities responsible for execution, reporting, or depository functions in RBI-regulated markets shall capture the LEI of transacting participants. Entities without a valid LEI shall not be permitted to undertake such transactions and must ensure their LEI remains current and not lapsed under the global LEI system.
3. UTI:
   1. UTI is a unique identifier assigned to over-the counter derivative transactions to enable comprehensive reporting and monitoring of such transactions.
   2. UTI shall be applicable to all over-the-counter derivative transactions undertaken under the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000, Master Direction – Risk Management and Inter-Bank Dealings, Master Direction – RBI (Rupee Interest Rate Derivatives) Directions, 2025, RBI (Forward Contracts in Government Securities) Directions, 2025 and Master Direction – RBI (Credit Derivatives) Directions, 2022 as specified by RBI.
   3. UTI shall be generated and reported for all OTC derivative transactions undertaken under the UI Directions and shall apply to transactions entered into on or after the effective date.

The UI Directions shall come into force from 27.03.2026.

Footnote

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

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