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Why is the RBI declaration required to trade in currency derivatives?

As per the RBI circular (PDF), traders are mandated to have an underlying contracted exposure to foreign currency if they want to trade in the currency derivatives segment.

Zerodha will collect the RBI declaration when the currency segment is activated. The mobile number must be linked with Aadhaar to activate the segment online. To activate the segment, follow these steps:

  1. Visit account.zerodha.com/account.
  2. Click on Login and log in with Kite credentials.
  3. Click on Activate Segments.
  4. Click on the toggle switch to select the currency segment.
  5. Click on Apply changes.
  6. Select the income range.
  7. Select Submit bank statement via OTP, then click on Get OTP.
  8. Select the bank and click on Proceed.
  9. Enter the OTP and click on Verify code.
  10. Click on Link account.
  11. Enter the OTP and Click on Verify OTP.
  12. Click on Accept.
  13. Click on Continue.
  14. Click on Sign Now.
  15. Enter your Aadhaar number and click on Accept and Continue.
  16. Enter the OTP and click on Verify OTP.

If the mobile number is not linked to Aadhaar or if you have a joint demat account, you can follow these steps:

  1. Print and sign the RBI declaration form (PDF).
  2. Courier it to:

    Zerodha Customer Support Centre
    192A 4th Floor,
    Kalyani Vista, 3rd Main Road,
    JP Nagar 4th Phase,
    Bengaluru, 560076

Did you know?

  • For non-individual accounts, the eSign can be completed by an authorised signatory using their individual Aadhaar number.
  • Clients must enable the segment on Console by 8 P.M to trade in currencies the next trading day. If the declaration is being couriered, it can take up to 48 working hours for the segment to be enabled.
  • The equity segment must be active to enable the currency segment.
  • Clients cannot enable currency and commodity segments at the same time. Separate requests must be placed. To learn how to activate commodity, see How to open a commodity account?

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