Reserve Bank of India (RBI) Governor Shaktikanta Das recently announced several measures aimed at improving various segments of the financial system. These measures encompass a wide range of areas, including call and notice money markets, resolution of stressed assets, digital lending, priority sector lending by urban cooperative banks (UCBs), licensing framework, e-RUPI vouchers, Bharat Bill Payment System (BBPS) streamlining, and RuPay cards. Let’s delve into the key details of these measures and their potential impact.

1. Enhanced Flexibility in Call and Notice Money Markets:
   Scheduled Commercial Banks (excluding small finance banks) can now determine their own borrowing limits within the prescribed prudential limits for inter-bank liabilities. This move allows greater flexibility for managing liquidity efficiently, thereby promoting stability in these markets.
2. Expansion of Stressed Asset Resolution Framework:
   The RBI intends to issue comprehensive guidelines on compromise settlements and technical write-offs applicable to all regulated entities, including cooperative banks. Additionally, the prudential norms for restructuring borrower accounts affected by natural calamities will be rationalized. These measures aim to facilitate smoother resolution of non-performing assets (NPAs) and strengthen the financial system.
3. Default Loss Guarantee in Digital Lending:
   To encourage responsible innovation and prudent risk management in digital lending, the RBI will introduce guidelines on default loss guarantee arrangements. This measure aims to enhance the orderly development of the digital lending ecosystem and boost credit penetration in the economy.
4. Extended Timelines for Priority Sector Lending Targets:
   Urban Cooperative Banks (UCBs) will receive an extension of two more years, until March 2026, to achieve priority sector lending (PSL) targets. UCBs that have already met the targets as of March 2023 will be incentivized accordingly. These adjustments aim to ease implementation challenges and promote financial inclusion.
5. Rationalization of Licensing Framework:
   The RBI plans to simplify and rationalize the licensing framework for Authorized Persons (APs) to effectively meet the evolving requirements of the Indian economy. This streamlined framework will improve the efficiency of foreign exchange facilities, benefiting individuals, tourists, and businesses.
6. Expansion of e-RUPI Vouchers:
   To increase the accessibility of e-RUPI digital vouchers, non-bank prepaid payment instruments (PPI) issuers will be permitted to issue e-RUPI vouchers. The process of issuance, redemption, and facilitation of e-RUPI vouchers will also be simplified, extending the reach of digital payments to a broader user base.
7. Streamlined Bharat Bill Payment System:
   The RBI aims to enhance the efficiency and participation in the Bharat Bill Payment System (BBPS) by streamlining transaction processes and membership criteria for operating units. These improvements will make bill payments easier and more convenient for individuals and businesses.
8. Expansion of RuPay Cards:
   In a move to broaden payment options for Indians traveling abroad, the RBI will allow banks to issue RuPay Prepaid Forex cards. Additionally, RuPay cards will be enabled for issuance in foreign jurisdictions, further enhancing the global acceptance and reach of RuPay cards.

Summary
The RBI’s announcement of the additional measures mentioned above underscores its commitment to improving and strengthening India’s financial systems. These measures encompass a wide range of areas, from market liquidity management to digital payments and international transactions. By implementing these measures, the RBI aims to foster financial stability, promote digitalization, and enhance the accessibility and acceptance of payment options, both domestically and globally.

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