New Delhi, June 26 -- The Reserve Bank of India (RBI) on Thursday issued the final norms to expand the country's credit derivatives market, allowing wider use of instruments such as credit default swaps (CDS) and total return swaps, according to an official statement by the Central bank.

This development aligns with the Union government's proposal to deepen India's credit derivatives market and improve risk management tools available to market participants in the Union Budget 2026.

The rules are applicable with immediate effect. "These Directions shall come into force on June 25, 2026," the RBI circular read.

As per the release, these rules will enable resident Indian non-retail users to deploy instruments such as credit default swaps ...