This article analyses the key proposals made by the RBI in its ‘Statement on Development and Regulatory Policies’. The proposals aim to promote stability and sustainability in the financial ecosystem. The key proposals include:
‣ Allowing Eligible Foreign Investors in IFSC to Invest in ‘Sovereign Green Bonds’
‣ Introduction of a Mobile Application for the ‘Retail Direct Scheme’
‣ Proposal to Modify the Liquidity Coverage Ratio (LCR) Framework for Better Liquidity Risk Management
‣ Small Finance Banks to Be Allowed to Deal in ‘Permissible Rupee Interest Rate Derivative Products’
‣ Facilitating Cash Deposit Facility Through the Use of Unified Payments Interface (UPI)
‣ Permit Linking of Prepaid Payment Instruments (PPIs) via Third-party Applications
‣ Allowing Distribution of CBDCs Through Non-bank Payment System Operators
