RBI unveils policy measures covering regulations, supervision, payment systems and financial markets

The Reserve Bank of India (RBI) has unveiled a set of developmental and regulatory policy measures covering regulations, supervision, payment systems and financial markets. Under regulations, RBI has proposed easing norms for banks by removing the condition linked to the inclusion of quarterly net profits in the Capital to Risk-weighted Assets Ratio (CRAR).
It has also proposed to do away with the Investment Fluctuation Reserve (IFR) requirement for commercial banks while revising norms for other bank categories. Additionally, RBI said a review of matters placed before bank boards has been undertaken to improve efficiency and focus on strategy and risk governance. Under supervision, RBI has consolidated supervisory instructions into 64 Master Directions across key functional areas to simplify compliance and enhance clarity.
In the payment systems segment, RBI has proposed to simplify the onboarding of MSMEs on the Trade Receivables Discounting System (TReDS) by removing due diligence requirements, aiming to improve access to working capital and ease of doing business. In financial markets, the RBI has decided to expand participation in the term money market by allowing non-bank entities such as NBFCs and housing finance companies and enhancing borrowing limits for standalone primary dealers to improve liquidity and strengthen monetary policy transmission.