RBI Announces Key Updates on Digital Payments, Liquidity Management and Banking Regulations

The Reserve Bank of India (RBI) has made several key announcements in recent months, covering various aspects of banking, digital payments, liquidity management, and financial regulations. Here’s a detailed look at the latest developments:

Digital Payments and Financial Inclusion

• RBI Digital Payments Index – September 2024: The RBI has released its Digital Payments Index (DPI) for September 2024, measuring the adoption and growth of digital transactions in India.
• Payment System Report – December 2024: The central bank has published its Payment System Report, highlighting trends and innovations in digital payments.
• Encouraging Use of Indian Rupee for Cross-Border Transactions: The RBI has taken steps to promote the use of the Indian Rupee and local currencies for international trade, easing FEMA regulations.

Liquidity Management and Monetary Measures

• USD/INR Buy/Sell Swap Auction: To manage liquidity in the financial system, the RBI will inject liquidity through a USD/INR swap auction.
• Daily Variable Rate Repo (VRR) Auctions: The RBI has announced the conduct of daily VRR auctions to ensure efficient liquidity management.
• Buyback of Government Securities: The central bank has initiated a buyback program for government bonds to stabilize the bond market.

Banking Sector Developments

• Meeting with Bank CEOs: RBI Governor Shaktikanta Das met with MDs & CEOs of public and private sector banks to discuss financial stability, risk management, and credit flow.
• New Guidelines for ARCs: The RBI has introduced guidelines on the settlement of dues for borrowers by Asset Reconstruction Companies (ARCs) to ensure fair debt resolution.
• Standing External Advisory Committee: A new advisory committee has been set up to evaluate applications for Universal Banks and Small Finance Banks.

Regulations and Supervisory Actions

• Appointment of Administrator for Aviom India Housing Finance: The RBI has superseded the board of directors of Aviom India Housing Finance Pvt. Ltd. and appointed an administrator due to regulatory concerns.
• List of NBFCs in the Upper Layer (NBFC-UL): The central bank has released the updated list of NBFCs classified under the Upper Layer (NBFC-UL) as part of its Scale-Based Regulation framework.
• Master Direction on Non-Resident Investment in Debt Instruments: The RBI has issued a new Master Direction on investments by foreign investors in Indian debt markets.

Key Reports and Publications

• Annual Report on the Ombudsman Scheme (2023-24): The RBI has released the latest Ombudsman report, providing insights into complaints and resolutions in the banking sector.
• RBI Bulletin – January 2025: The latest RBI Bulletin covers economic trends, inflation analysis, and banking sector updates.
• State-Level Inflation Forecasts: A new RBI working paper examines inflation trends across different states in India.
• Occasional Papers – Vol. 45, No.1 (2024): The RBI has published its latest Occasional Papers, featuring research on economic and financial trends.

Financial Market Updates

• Market Borrowings by State Governments (Jan–March 2025): The RBI has released an indicative calendar for market borrowings by state governments and union territories.
• India’s International Investment Position (IIP) – September 2024: The RBI has published data on India’s external financial assets and liabilities for September 2024.

Technological Advancements in Banking

• Beneficiary Bank Account Name Look-Up for RTGS & NEFT: A new name look-up facility has been introduced for Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) to reduce transaction errors.
• RBI Hackathon (HaRBInger 2024) Results Announced: The third edition of RBI’s global hackathon, focused on innovative fintech solutions, has concluded with the announcement of winners.

Regulatory Relaxations

• Removal of Supervisory Restrictions: The RBI has lifted restrictions on:
  • Asirvad Micro Finance Ltd., Chennai
  • DMI Finance Pvt. Ltd., New Delhi
  • Arohan Financial Services Ltd., Kolkata
• Withdrawal of ₹2000 Denomination Banknotes – Status Update: The RBI has provided an update on the withdrawal of ₹2000 notes, ensuring a smooth transition.

Speeches and Public Engagements

• Deputy Governor’s Address on Liability Management: Shri M. Rajeshwar Rao, Deputy Governor of RBI, delivered a keynote address on challenges in liability management at the Mint Annual BFSI Summit & Awards 2025 in Mumbai on January 17, 2025.
• RBI@90 Public Sector Badminton Tournament: The RBI organized an All India Public Sector Badminton Tournament in Bengaluru as part of its 90th-anniversary celebrations.

The Reserve Bank of India continues to implement policy measures, technological upgrades, and regulatory reforms to ensure financial stability and promote a robust banking system in India.