<h1>RBI releases draft directions for novation of over-the-counter derivative contracts under Section 45W of RBI Act 1934</h1> The Reserve Bank of India released draft directions for novation of over-the-counter derivative contracts under Section 45W of the RBI Act, 1934. The draft updates existing regulations from 2013, incorporating changes in the regulatory framework and market feedback to rationalize requirements. Comments from banks, market participants, and interested parties are invited until August 1, 2025. The new directions aim to modernize the regulatory approach to OTC derivative contract novation processes.