The Reserve Bank of India in its press release dated 13th June 2020 has modified the oversight framework for financial market infrastructure and retail payment systems with a view to ensure the safety and stability of financial structure.
The Reserve Bank had adopted the Principles for Financial Market Infrastructures for supervising and assessing the FMIs regulated by it and had in June 2013 prepared a document titled “Regulation and Supervision of FMIs regulated by RBI”. The scope of the document was limited to oversight activities and tools used for the supervision of the FMIs prevailing then. This document, by enhancing supervisory transparency and disclosure, would enable better regulatory compliance by payment systems operators, and enhance customer awareness, eventually contributing to the safety and stability of our payment systems.
Accordingly, the oversight framework for FMIs and RPSs has been updated in line with the RBI’s 2019-2021 vision document for payment and settlement systems to incorporate a supervisory framework for RPS entities and new supervisory considerations for FMIs.
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