Mumbai, Apr 05 (ANI): RBI Governor Shaktikanta Das addresses throughout a press convention concerning the financial coverage choices, in Mumbai on Friday. (ANI Photo)
| Photo Credit: ANI
Considering the recognition and comfort of UPI, the Reserve Bank of India (RBI) has proposed to enable UPI for cash deposit facility. RBI Governor Shaktikanta Das, whereas making a press release on developmental and regulatory insurance policies, mentioned, “Given the popularity and acceptance of UPI, as also the benefits seen from the availability of UPI for card-less cash withdrawal at ATMs, it is now proposed to facilitate cash deposit facility through use of UPI.”
Cash Deposit Machines (CDMs) deployed by banks improve buyer comfort whereas lowering cash-handling load on financial institution branches. The facility of cash deposit is presently out there solely by the usage of debit playing cards.
The Governor mentioned operational directions on enabling UPI for cash deposit facility will likely be issued shortly.
In one other announcement to present extra flexibility to Prepaid Payment Instruments (PPIs) holders, the RBI has proposed to allow linking of PPIs by third-party UPI functions. “This will enable the PPI holders to make UPI payments like bank account holders. Instructions in this regard will be issued shortly,” Mr. Das mentioned.
At current, UPI funds from financial institution accounts could be made by linking a checking account by the UPI App of the financial institution or utilizing any third-party UPI software. However, the identical facility is just not out there for PPIs. PPIs can at the moment be used to make UPI transactions solely through the use of the appliance offered by the PPI issuer.
Meanwhile in one other measure, the RBI to facilitating wider non-resident participation in Sovereign Green Bonds (SGrBs), determined to allow eligible foreign investors in the International Financial Services Centre (IFSC) to additionally invest in such bonds.
A scheme for funding and buying and selling in SGrBs by eligible foreign investors in IFSC is being notified individually in session with the Government and the IFSC Authority.
Based on an announcement in the Union Budget for FY 2022-23, the Government of India had issued SGrBs in January 2023. The SGrBs have been additionally issued as a part of the Government borrowing calendar in FY 2023-24.
At current, foreign portfolio investors (FPIs) registered with SEBI are permitted to invest in SGrBs below the totally different routes out there for funding by FPIs in authorities securities.
The RBI has additionally determined to introduce a Mobile App of its RBI Retail Direct scheme which was rolled out in November 2021, giving entry to particular person investors to keep gilt accounts with RBI and invest in authorities securities. The Scheme allows investors to purchase securities in major auctions in addition to purchase/promote securities by the NDS-OM platform.
“To further improve ease of access, a mobile application of the Retail Direct portal is being developed. The app will enable investors to buy and sell instruments on the go, at their convenience. The app will be available for use shortly,” Mr. Das mentioned.
The central financial institution on Friday additionally determined for the distribution of Central Bank Digital Currencies (CBDCs) by Non-bank Payment System Operators.
Currently CBDC pilots in the Retail and Wholesale segments are underway with extra use-cases and extra taking part banks. Continuing with this method, the RBI has proposed to make CBDC-Retail accessible to a broader section of customers in a sustained method, by enabling non-bank cost system operators to supply CBDC wallets.
“This is expected to enhance access and expand choices available to users apart from testing the resiliency of the CBDC platform to handle multi-channel transactions. Necessary changes will be made to the system to facilitate this,” Mr Das mentioned.
To increase the avenues out there to the Small Finance Banks for hedging rate of interest threat in their steadiness sheet and industrial operations extra successfully in addition to to present them with higher flexibility, the RBI has determined to allow them to deal in permissible rupee curiosity by-product merchandise in phrases of Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019. A round in this regard will likely be issued shortly.
The present pointers allow Small Finance Banks to use solely Interest Rate Futures (IRFs) for the aim of proprietary hedging.
The RBI additionally determined to evaluate the Liquidity Coverage Ratio (LCR) framework.
“Banks covered under LCR framework are required to maintain a stock of high quality liquid assets (HQLA) to cover the expected net cash outflows in the next 30 calendar days. However, the recent episodes in some jurisdictions have demonstrated the increased ability of the depositors to quickly withdraw or transfer deposits during times of stress, using digital banking channels,” Mr. Das mentioned.
“Such emerging risks may require a revisit of certain assumptions under LCR framework. Therefore, certain modifications to the LCR framework are being proposed towards facilitating better management of liquidity risk by the banks. A draft circular in this regard will be issued shortly for comments of all stakeholders,” he mentioned.
