RBI on June 08, 2023 has issued Statement on Developmental and Regulatory Policies relating to (i) Financial Markets; (ii) Regulation; and (iii) Payment Systems. The following proposals are made in the policy:
- Scheduled Commercial Banks (excluding Small Finance Banks) can set their own limits for borrowing in Call and Notice Money Markets within the prudential limits for inter-bank liabilities prescribed by the Reserve Bank of India.
- Issue a comprehensive regulatory framework governing compromise settlements and technical write-offs covering all regulated entities;
- Rationalise the extant prudential norms for implementation of resolution plans in respect of exposures affected by natural calamities, drawing upon the lessons from the resolution frameworks introduced during the Covid19 pandemic.
- Put in place a regulatory framework for permitting Default Loss Guarantee arrangements in Digital Lending.
- Rationalise and simplify the licensing framework for APs to effectively meet the emerging requirements of the rapidly growing Indian economy.
