The Reserve Bank of India has today released a policy document on Regulation and Supervision of Financial Market Infrastructures regulated by it. The policy on supervision and regulation of the FMIs regulated by the Reserve Bank describes in detail the criteria for designating an FMI, applicability of PFMIs to the FMIs, oversight of FMIs and other related aspects. The financial market infrastructures regulated by the Reserve Bank include Real Time Gross Settlement (RTGS), Securities Settlement Systems (SSSs), Clearing Corporation of India Ltd. (CCIL) and Negotiated Dealing System (NDS).

Background

The Reserve Bank, as a member of Financial Stability Board (FSB) and of CPSS, is committed to the adoption and implementation of the “Principles for FMIs”. The commitment is outlined in its vision document on Payment Systems in India for 2012-15 (Chapter-3: Assurance through Risk Management and Oversight).

The Committee on Payment and Settlement Systems (CPSS) and International Organisation of Securities Commissions (IOSCO) had issued the “Principles for Financial Market Infrastructure” (PFMIs) in April 2012. The principles - 24 for the financial market infrastructures and five responsibilities for the relevant public authorities - were issued to enhance safety and efficiency in payment, clearing, settlement and recording arrangements and, more broadly, to limit systemic risk and foster transparency and financial stability. The members of CPSS and IOSCO are required to strive to adopt the PFMI in their respective jurisdictions in line with G-20 expectations.

 

Alpana Killawala

Principal Chief General Manager

Press Release : 2013-2014/183

Regulation of financial market infrastructures aligns RBI supervision with international PFMI standards to enhance payment and settlement safety. The Reserve Bank of India sets out a policy framework for regulating and supervising Financial Market Infrastructures it regulates, specifying designation criteria, applicability of the Principles for Financial Market Infrastructures, and oversight mechanisms for RTGS, Securities Settlement Systems, Clearing Corporation, and Negotiated Dealing System to promote safe, efficient payment, clearing and settlement arrangements.