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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Statement on Developmental and Regulatory Policies

08-Feb-2024 | Press Release: 2023-2024/1827

RBI has issued Statement on Developmental and Regulatory Policies.

Key highlights:-

1. This Statement sets out various developmental and regulatory policy measures relating to (i) Financial Markets; (ii) Regulations; and (iii) Payment Systems and Fintech.

2. Review of the Regulatory Framework for Electronic Trading Platforms: It has been decided to review the regulatory framework for ETPs. The revised regulatory framework will be issued separately for public feedback.

3. Hedging of Gold Price Risk in the Over the Counter (OTC) Market in the International Financial Services Centre (IFSC): It has now been decided to also allow to resident entities to hedge the price of gold in the over the counter (OTC) segment in the IFSC.

4. Key Fact Statement (KFS) for Retail and MSME Loans & Advances: It has been decided to mandate all REs to provide the ?Key Fact Statement? (KFS) to the borrowers for all retail and MSME loans. Providing critical information about the terms of the loan agreement, including all-inclusive interest cost, shall greatly benefit the borrowers in making an informed decision.

5. Enhancing the Robustness of Aadhaar Enabled Payment System: It is proposed to streamline the onboarding process, including mandatory due diligence, for AePS touchpoint operators, to be followed by banks. Additional fraud risk management requirements will also be considered. Instructions in this regard shall be issued shortly.

6. Principle-based Framework for Authentication of Digital Payment Transactions: It is proposed to adopt a principle-based ?Framework for authentication of digital payment transactions?. Instructions in this regard will be issued separately.

7. Introduction of Programmability and Offline Functionality in Central Bank Digital Currency (CBDC) Pilot: It is proposed to introduce an offline functionality in CBDC-R for enabling transactions in areas with poor or limited internet connectivity.

For details please refer the attachment.

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