�ेस �काशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
0 वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, क� �ीय कायार्लय, शहीद भगत �संह मागर्, फोटर्, मुब
ं ई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : [email protected] Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 07, 2025
Statement on Developmental and Regulatory Policies
This Statement sets out various developmental and regulatory policy measures
relating to (i) Financial Markets ; (ii) Cybersecurity ; and (iii) Payment Systems.
I. Financial Markets
1. Introduction of forward contracts in Government securities
Over the past few years, the Reserve Bank has been expanding the suite of
interest rate derivative products available to market participants to manage their
interest rate risks. In addition to Interest Rate Swaps, products such as Interest Rate
Options, Interest Rate Futures, Interest Rate Swaptions, Forward Rate Agreements,
etc. are available to market participants. We have been receiving feedback about the
need to allow forward contracts in Government securities to enable further market
development. Such forward contracts will enable long-term investors such as
insurance funds to manage their interest rate risk across interest rate cycles. They
will also enable efficient pricing of derivatives that use bonds as underlying
instruments. Draft directions in this regard were issued in December 2023. The final
directions, taking into account the public feedback, will be issued shortly.
2. Access of SEBI-registered non-bank brokers to NDS-OM
The Negotiated Dealing System – Order Matching (NDS-OM) is an electronic
trading platform for secondary market transactions in government securities. Access
to NDS-OM is, at present, available to regulated entities and to the clients of banks
and standalone primary dealers. With a view to widening access, it has been decided
that non-bank brokers registered with SEBI can directly access NDS-OM, on behalf
of their clients. These brokers may access NDS-OM subject to the regulations and
conditions laid down by the Reserve Bank in this regard. Necessary instructions are
being issued separately.
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3. Comprehensive review of trading and settlement timings across various
market segments
Synchronized and complimentary market and settlement timings across various
financial market segments can facilitate benefits of efficient price discovery and
optimization of the liquidity requirements. Over the last few years, there have been
several developments including increased electronification of trading, availability of
forex and certain interest rate derivative markets on a 24X5 basis, increased
participation of non-residents in domestic financial markets and availability of
payment systems on a 24X7 basis. Accordingly, it has been decided to set up a
working group with representation from various stakeholders to undertake a
comprehensive review of trading and settlement timing of financial markets regulated
by the Reserve Bank. The Group is expected to submit its report by April 30, 2025.
II. Cybersecurity
4. Enhancing Trust in the Financial Sector through 'bank.in' and ‘fin.in’
domains
Increased instances of fraud in digital payments are a significant concern. To
combat the same, the Reserve Bank of India (RBI) is introducing the 'bank.in'
exclusive Internet Domain for Indian banks. This initiative aims to reduce cyber
security threats and malicious activities like phishing; and, streamline secure financial
services, thereby enhancing trust in digital banking and payment services. The
Institute for Development and Research in Banking’ Technology (IDRBT) will act as
the exclusive registrar. The actual registrations will commence from April 2025.
Detailed guidelines for banks will be issued separately. Going forward, it is planned
to have an exclusive domain viz., “fin.in” for other non-bank entities in the financial
sector.
III. Payment Systems
5. Enabling Additional Factor of authentication in cross-border Card Not
Present transactions
Introduction of Additional Factor of Authentication (AFA) for digital payments has
enhanced the safety of transactions which, in turn, provided confidence to customers
to adopt digital payments. This requirement, however, is mandatory for domestic
transactions only.
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In order to provide a similar level of safety for online international transactions
using cards issued in India, it is proposed to enable AFA for international card not
present (online) transactions as well. This will provide an additional layer of security
in cases where the overseas merchant is enabled for AFA. Draft circular will be
issued shortly for feedback from stakeholders.
(Puneet Pancholy)
Press Release: 2024-2025/2096 Chief General Manager
