The Reserve Bank today said Clearing Corporation Of India (CCIL) will be the designated trade repository for over-the-counter (OTC) interest rate and foreign exchange contracts.
As notified in May 2015, an amendment to the Payment and Settlement Systems Act, 2007 (PSS Act) have brought the trade repository under the ambit of the said Act.
"Accordingly, the Clearing Corporation of India Limited shall be the designated trade repository under the PSS Act for the OTC interest rate and foreign exchange contracts as mandated by the RBI from time to time." "The provisions of the PSS Act shall apply to the designated trade repository as they apply to, or in relation to, payment systems to the extent applicable", RBI said in statement.
A trade repository (TRs) maintains a centralised electronic record or database of transaction data. These have emerged as a new type of Financial Market Instruments (FMIs) and have recently grown in importance, particularly in the OTC derivatives market.
RBI said the regulation as in line with Payment Systems in India-Vision 2012-15 that strives to "pro-actively encourage electronic payment systems for ushering in a less-cash society in India".
Besides, it aims to ensure that the payment and settlement systems in the country are safe, efficient, interoperable, authorised, accessible, inclusive and compliant with international standards.
RBI said the oversight of the FMIs would be primarily a combination of offsite supervision and onsite inspection.
In a separate notification on relaxing reporting mechanism in relation to Diamond Dollar Account (DDA), RBI said firms and companies dealing in purchase and sale of rough and polished diamonds who have such accounts will not be required to furnish quarterly report.
"With a view to liberalising the procedure, it has now been decided to dispense with the required statements with immediate effect", RBI said.
However, dealer banks may maintain the database at their own end and make available the same as and when called upon by the RBI, it said.
Earlier, the dealer banks were required to submit quarterly reports giving details of the name and address of the firm/company in whose name the DDA is opened.
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