The Reserve Bank of India (RBI) on August 10, 2023, issued a notification regarding the Statement on Developmental and Regulatory Policies.
The following has been stated namely: -
• This Statement sets out various developmental and regulatory policy measures relating to Financial Markets, Regulation and Supervision, Payment Systems, and FinTech.
• The following are stated namely: -
1. Financial Markets – A comprehensive, risk-based framework has been decided to be put in place covering the administration of all benchmarks related to foreign exchange, interest rates, money markets, and government securities such as benchmarks on certificates of deposits (CDs) rates, repo rates, and FX Options Volatility Matrix as well as other benchmarks on government securities.
2. Regulation and Supervision – The revised framework envisages the withdrawal of the requirement of a sponsor for the IDFs, the permission to finance Toll Operate Transfer projects (ToT) as direct lenders, access to ECBs, and making tri-partite agreement optional for PPP projects.
3. Payment Systems –
a. It is proposed to launch an innovative payment mode viz., “Conversational Payments” on UPI, that will enable users to engage in a conversation with an AI-powered system to initiate and complete transactions in a safe and secure environment
b. To promote the use of UPI-Lite, it is proposed to facilitate offline transactions using Near Field Communication (NFC) technology. A limit of ₹200 per transaction and an overall limit of ₹2000 per payment instrument has been prescribed by the Reserve Bank for small-value digital payments in offline mode including for National Common Mobility Card (NCMC) and UPI Lite
4. FinTech – A digital Public Tech Platform is being developed by the Reserve Bank Innovation Hub (RBIH). The Platform would enable the delivery of frictionless credit by facilitating a seamless flow of required digital information to lenders.
[Press Release: 2023-2024/724]
