RBI sets up Technical Consultative Committee for Financial Markets

Digital Desk |

Mumbai, Nov 4 (IANS) The Reserve Bank has constituted a Technical Consultative Committee for Financial Markets (TCCFM), headed by RBI Deputy Governor Rohit Jain, against the backdrop of rapidly evolving financial markets and market infrastructure.

“The Committee will serve as a forum for structured engagement with market participants and stakeholders by the Reserve Bank on policy and operational matters related to money, government securities and foreign exchange markets as well as the respective derivative markets and infrastructure,” according to an RBI statement issued on Wednesday.

While Jain is in charge of RBI’s Financial Markets Regulation Department (FMRD) the committee will have seven external members representing banks, market associations, clearing institutions and financial services firms. The committee will meet at least once every quarter.

The external members include Ananth Narayan, former whole-time member of the Securities and Exchange Board of India (Sebi) and professor of practice at IIT Bombay; Shamsher Singh, chairman of the Fixed Income Money Market and Derivatives Association of India (FIMMDA) and deputy managing director at State Bank of India; Neeraj Gambhir, executive director at Axis Bank.

Shailendra Jhingan, head of treasury and economic research at ICICI Bank; Aditya Bagree, managing director and head of markets at Citi India; Nand Kishore, managing director of Clearing Corporation of India Limited; and Ridham Desai, managing director at Morgan Stanley India are the other members.

The committee’s terms of reference include examining issues related to the functioning, efficiency, liquidity and resilience of the money, government securities, foreign exchange and related derivative markets. It will also identify measures to deepen and broaden these markets.

The panel will examine emerging policy and operational issues affecting financial markets, including implementation of RBI measures and identification of unintended market frictions.

One of the terms of reference is to address issues relating to trading, clearing, settlement, reporting and other market infrastructure, along with the associated regulatory and operational frameworks.

Besides, the committee will discuss international and domestic developments, financial innovations and emerging risks that could affect Indian financial markets. The RBI may also refer specific market-related issues or macroeconomic considerations to the committee panel for examination.

The RBI also announced that it has been decided to implement interoperability among NBFC-Account Aggregators (NBFC-AA) in order to enhance customer convenience. This will enable customers to access and share their financial information, across different Financial Information Providers, through any NBFC-AA of their choice.

Additionally, Depositories regulated by the Securities and Exchange Board of India are being facilitated to include information related to bank deposit accounts in their Consolidated Account Statement (CAS) through the NBFC-AAs. This will enable demat account holders to view information relating to their demat account holdings and bank deposit accounts in one place in the CAS.

Customers -- including those who do not have demat accounts -- can continue to obtain a consolidated view of their financial information and share the same through the NBFC - AAs also.

Both measures aim to enhance customer convenience and are expected to be implemented by December 31, 2026.