Inquisitive Mind

Reserve Bank of India (RBI) has issued directions on access criteria for NDS-OM. What is NDS-OM? Negotiated Dealing System-Order Matching (NDS-OM) is the Electronic Trading Platform (ETP) authorised by RBI for transactions in Government securities. It is an anonymous screen-based order matching module, where the participants can trade anonymously by placing their orders on the system or accepting the orders already placed by other participants.  It is operated by Clearing Corporation of India Limited (CCIL) on behalf of RBI.  Who can access NDS-OM? Any person / entity eligible to invest in Government securities shall be eligible to access NDS-OM either through direct access or through indirect access or through Stock Broker Connect. Direct Access – means access to NDS-OM wherein an entity that is party to a transaction directly executes / reports the transaction on / to the platform and such transactions are settled in its own Subsidiary General Ledger (SGL) account . Indirect...

The bi-monthly monetary policy of Reserve Bank of India (RBI) was announced on February 07, 2025. Here are some of the highlights of the monetary policy announcement. Rates   Change Rate Policy repo rate Reduced by 0.25% 6.25% Standing deposit facility (SDF) rate 6.00% Marginal standing facility (MSF) rate 6.50% Bank rate 6.50% Monetary policy stance ‘Neutral’ and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth. Domestic Economy    GDP growth projection CPI inflation projection FY 2024-25 6.4% 4.8% FY 2025-26 6.7% 4.2% India’s current account deficit (CAD) moderated from 1.3% of GDP in Q2 of last year to 1.2% in Q2 of this year. According to the World Bank, India, with an estimated inflow of USD 129.1 billion,...

Reserve Bank of India (RBI) has released the framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act, 2007. What are the contraventions as per the Payment and Settlement Systems Act, 2007 (PSS Act)? As per Section 26 of the Payment and Settlement Systems Act, 2007 (PSS Act), the contraventions are as under – Operation of a payment system without authorisation or failure to comply with the terms and conditions subject to which authorisation was issued [section 26(1)]. Wilfully makes a statement which is false in any material particular or wilfully omits to make a material statement in any application for authorisation or return or other document or information [section 26(2)]. Failure to produce any statement, information, returns or documents [section 26(3)]. Disclosure of information which is prohibited [section 26(4)]. Non-compliance of direction issued by RBI or failure to pay the penalty imposed by RBI within the stipulated p...

Reserve Bank of India (RBI) has issued directions on investments in debt instruments by non-residents. What are the channels for investments in debt instruments by non-residents? General Route – for investment in Government securities and corporate debt securities by Foreign Portfolio Investors (FPIs) subject to specified investment limits and macro-prudential limits. Voluntary Retention Route (VRR) – for investments in Government securities and corporate debt securities, free of certain macro-prudential limits applicable to FPI investments in debt markets under the General Route, by FPIs that commit to remain invested for a stipulated retention period. Fully Accessible Route (FAR) – for investments by non-residents in certain specified categories of Central Government securities (‘specified securities’) without any restriction. Scheme for Trading and Settlement of Sovereign Green Bonds (SGrBs) issued by the Central Government by eligible foreign investors in the International Finan...