Reserve Bank of India (RBI) Statement sets out various developmental and regulatory policy measures

Posted 06 Apr 2024

2 min read

The measures include:

Development	Description
Trading of Sovereign Green Bonds (SGrBs) in International Financial Services Centre (IFSC)	At present, foreign portfolio investors are permitted to invest in SGrBs under different routes for investment by FPIs in government securities. SGrBs are bonds issued by governments to fund environmentally sustainable projects.
RBI Retail Direct Scheme - Introduction of Mobile App	RBI Retail Direct Scheme, launched in 2021, gives access to individual investors to maintain gilt accounts with RBI and invest in government securities.
Dealing in Rupee Interest Rate Derivative products – Small Finance Banks (SFBs)	Currently, SFBs are permitted to use only Interest Rate Futures (IRFs) for proprietary hedging. IRF contract allows the buyer and seller to lock in the price of interest-bearing asset for a future date. Interest Rate Derivative is a financial derivative 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	Facility of cash deposit is presently available only through use of debit cards. Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India to facilitate inter-bank transactions.
Distribution of Central Bank Digital Currency (CBDC) through Non-bank Payment System Operators	Presently, CBDC pilot project is going on for Retail and Wholesale segments. CBDC is a digital form of currency notes issued by a central bank. CBDC is referred as e₹ (digital Rupee).