RBI Policy Initiatives have been announced to enhance efficiency, transparency, and security in financial markets, lending institutions, and digital payments.
Key measures:
| Trading of Sovereign Green Bonds (SGrBs) at the International Financial Services Centre (IFSC), Gandhinagar. | Currently, foreign portfolio investors (FPIs) registered with SEBI can invest in SGrBs through various investment routes available for FPIs in government securities.To broaden non-resident participation in SGrBs, eligible foreign investors in the International Financial Services Centre (IFSC) are now permitted to invest in these bonds.SGrBs are government-issued bonds designed to finance environmentally sustainable projects. |
| RBI Retail Direct Scheme- Mobile app | The RBI Retail Direct Scheme, initiated in 2021, is set to introduce a mobile app for accessing the Retail Direct portal.This move aims to enhance convenience for retail investors and further strengthen the G-sec market.The scheme allows individual investors to maintain gilt accounts with RBI and invest in government securities. |
| Integration with offshore INR markets: | The review responds to the integration between onshore INR markets in India and offshore centers, catering to demands for access to offshore ETPs offering INR derivative products. |
| Access to overseas derivative platforms for gold hedging | Resident entities in India can now access overseas derivative platforms for hedging against gold price fluctuations, both on recognized exchanges and over-the-counter markets based in International Financial Services Centre (IFSC). |
| Small Finance Banks (SFBs) are allowed to engage in Rupee Interest Rate Derivative products | SFBs are currently authorized to utilize only Interest Rate Futures (IRFs) for proprietary hedging purposes. IRF contracts enable buyers and sellers to fix the price of interest-bearing assets for future dates. An Interest Rate Derivative is a financial contract whose value is derived from one or more interest rates, prices of interest rate instruments, or interest rate indices. |
| Enabling UPI for Cash Deposit Facility | Cash deposits are currently facilitated exclusively through the use of debit cards. The Unified Payments Interface (UPI) is an instant real-time payment system developed by the National Payments Corporation of India to streamline inter-bank transactions. |
| Authentication framework for digital transactions: | RBI plans to adopt a broad principle-based framework to authenticate various types of digital transactions, promoting the adoption of advanced authentication mechanisms beyond SMS-based OTPs. |
| CBDC retail pilot enhancements: | Ongoing CBDC retail pilot will see functionality enhancements including programmability, enabling agencies and corporates to define specific use cases, and offline functionality to facilitate transactions in areas with poor internet connectivity.CBDC is essentially a digital version of currency notes issued by a central bank and is commonly referred to as e₹ (digital Rupee). |
| Distribution of Central Bank Digital Currency (CBDC) through Nonbank Payment System Operators | Currently, there is a pilot project underway for Central Bank Digital Currency (CBDC) in both Retail and Wholesale segments. |
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