- Interest Rate Derivatives, financial instruments used to hedge or speculate on interest rate movements.
- These directions will come into effect from March 1, 2026.
- Both residents and non-residents are allowed to undertake rupee IRD transactions.
- Market makers include Scheduled Commercial Banks (SCBs), Standalone Primary Dealers (SPDs), Upper-Layer Non-Banking Financial Companies (NBFCs), and specialized banks.
- Participants must be classified as retail users or non-retail users by market makers.
- Foreign investors’ speculative positions are capped at PVBP (Price Value of a Basis Point) ₹1,000 crore.
Question:
Q1. The Rupee Interest Rate Derivatives (IRD) Directions, 2025 issued by the RBI will come into effect from which date?a) December 8, 2025
b) January 1, 2026
c) March 1, 2026
D. April 1, 2026
Answer: c) The Rupee Interest Rate Derivatives (IRD) Directions, 2025 will come into effect from March 1, 2026.
