Statement on Developmental and Regulatory Policies

Summary:

This document outlines various policy measures related to financial markets, regulations, and payment systems and fintech. The main highlights include:

1. Review of the regulatory framework for electronic trading platforms to ensure fair access, transparent trading processes, and prevention of market abuse.
2. Permitting resident entities to hedge gold price risk in the over-the-counter (OTC) market in the International Financial Services Centre (IFSC).
3. Implementing the Key Fact Statement (KFS) for all retail and MSME loans to provide borrowers with critical information about loan agreements.
4. Enhancing the security of Aadhaar Enabled Payment System (AePS) transactions by streamlining the onboarding process and introducing additional fraud risk management requirements.
5. Adopting a principle-based framework for authentication of digital payment transactions to facilitate the use of alternative authentication mechanisms.
6. Introducing programmability and offline functionality in the Central Bank Digital Currency (CBDC) pilot to enable additional use cases, such as government agencies making payments for defined benefits and corporate expenses.

These measures aim to promote transparency, security, and innovation in the financial sector, enabling greater flexibility and accessibility for users.