NCDEX Introduces India's First Exchange-Traded Weather Derivatives Contract 'RAINMUMBAI'
Formulated alongside IIT Bombay, the derivative relies on official rainfall data sourced from the India Meteorological Department (IMD) to settle transactions exclusively on a cash basis.
The financial contract utilizes a Cumulative Deviation Rainfall (CDR) model, measuring monsoon precipitation deviations (June to September) against a historical 30-year dataset (1991–2020).
The contract standardizes a tick size of 1 mm with a transaction lot multiplier of ₹50 per mm, limiting single orders to a maximum size of 50 lots.
Exam Perspective: The launch signals India's official entry into regulated weather risk trading, helping sectors like logistics, agricultural lending, construction, and power utilities hedge financial exposure to extreme rainfall.
Key Facts / Static GK
The India Meteorological Department (IMD), established in 1875, acts as the primary agency responsible for meteorological observations and weather forecasting.
Practice Quiz — 25 May 2026
Q1. Which banking institution registered the highest target achievement of 288% under the Atal Pension Yojana (APY) mobilization campaign during the financial year 2025-26?
Q2. Under which statutory legislation did the Reserve Bank of India grant the final Prepaid Payment Instrument (PPI) issuer authorization to ZikZuk Technologies?
Q3. Which mathematical model is utilized to structure the benchmark of India's first exchange-traded weather derivatives contract 'RAINMUMBAI'?
Q4. Who has been appointed to chair the newly formed PFRDA committee tasked with exploring new asset classes to maximize returns under the National Pension System (NPS)?
Q5. Which of the following represents the largest infrastructure development approved under India's recent ₹2,600 crore allocation for the Chenab river basin?
Keep Learning with PrepZen
Get daily current affairs, live mock tests, mistake bank, vocab builder & more — all free on your phone.
More from BANKING & FINANCE
- RBI Central Board Reviews Balance Sheet Expansion and Financial Metrics at 623rd Meeting
- Fintech Skydo Bags Crucial Payment Service Provider Approvals from RBI & GIFT City
- RBI Approves Landmark ₹2.87 Lakh Crore Surplus Transfer to Central Government for FY26
- RBI Grants Final Prepaid Payment Instrument Issuer License to ZikZuk Technologies
- PFRDA Celebrates Atal Pension Yojana Milestones at Annual Felicitation Ceremony