Reserve Bank of India (RBI) Statement sets out various developmental and regulatory policy measures | Current Affairs | Vision IAS
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Reserve Bank of India (RBI) Statement sets out various developmental and regulatory policy measures

Posted 06 Apr 2024

2 min read

  • The measures include:

 

DevelopmentDescription
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).
  • Tags :
  • RBI
  • Reserve Bank of India
  • Unified Payment Interface (UPI)
  • Sovereign Green Bonds (SGrBs)
  • Small Finance Banks
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