RBI Announces Technical Consultative Committee for Financial Markets

The Reserve Bank of India (RBI) is to constitute a Technical Consultative Committee on Financial Markets to create a structured forum for discussions on policy and operational matters related to financial markets, as per news report. 

The committee will provide a platform for consultations on issues linked to financial market development and day-to-day operations. This comes as the central bank is also working on measures aimed at strengthening financial data infrastructure. 

Focus on Financial Market Development 

The proposed committee is expected to bring market-related issues into a more structured consultation process. The RBI said the forum will facilitate discussions on matters concerning the development and functioning of financial markets. 

Vivek Iyer, Partner and Financial Services Risk Advisory Leader at Grant Thornton Bharat, said the committee could be relevant as financial markets face volatility across exchange rates, interest rates and derivatives, with possible implications for market stability. 

He added that consultation with market participants could help smoothen volatility and reflects the RBI's approach of addressing potential issues in advance. 

Other Measures on Financial Data 

The committee announcement comes alongside other measures concerning financial data infrastructure. Prahlad Krishnamurthi, CEO of Probe42, said the RBI's steps include interoperability across Account Aggregators and richer consolidated account statements. 

According to Krishnamurthi, stronger data infrastructure becomes increasingly relevant in a tighter rate environment, where timely and verifiable borrower information can help lenders and corporates assess credit risk. 

Deposits to Be Included in Statements 

Separately, the RBI has announced measures allowing SEBI-registered depositories to include customer deposit details in their statements. The measure was part of the central bank's October monetary policy announcements. 

The move will allow relevant customer information to be reflected in statements issued by registered depositories. The RBI said the measures will be implemented by the end of 2026, with further operational details to be announced. 

Read More: RBI Increases Repo Rate to 5.50%, First Hike Since February 2023! 

Conclusion 

The Technical Consultative Committee will provide a formal channel for discussions on financial market policy and operations. The initiative comes alongside wider measures focused on market functioning and financial data infrastructure. 

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