The Reserve Bank of India (RBI) is forming a Technical Consultative Committee on Financial Markets to provide a structured forum for discussions on policy and operational matters related to financial markets. According to reports from CNBC TV18, the committee will facilitate consultations on issues concerning financial market development and operations. This initiative represents the central bank's effort to enhance policy coordination and operational efficiency in the financial sector. RBI Governor Sanjay Malhotra announced during the October 7 MPC announcement that the committee will provide a forum for structured engagement with market participants and other stakeholders on policy and operational matters related to financial markets. The committee will serve as a forum for structured engagement with market participants and stakeholders on policy and operational matters related to money, government securities and foreign exchange markets, as well as their respective derivatives markets and infrastructure.
The Reserve Bank of India (RBI) has allowed interoperability among NBFC Account Aggregators (AAs), a move aimed at making financial data sharing easier for consumers and improving access to information across the financial ecosystem. As reported by Moneycontrol, this initiative will allow customers to aggregate their financial information through different account aggregators by onboarding on only one account aggregator. Under the Account Aggregator framework, customers can share their financial information with regulated financial entities digitally and with their consent. The new framework will be implemented by the end of 2026. The interoperability move is expected to address one of the key challenges in the existing AA ecosystem: the need for financial institutions and users to integrate with multiple account aggregators separately.
The Reserve Bank of India (RBI) raised its key interest rate for the first time in nearly four years, with the Monetary Policy Committee (MPC) increasing the key repo rate by 25 basis points to 5.50%. As reported by Mint, this decision came as rising inflation risks and a sharp shift in the global rate environment prompted the central bank to reverse its easing cycle. The rate hike was in line with market expectations, with nine of 10 economists surveyed by Mint having expected a rate hike, while only one called for a pause. However, the change in stance from "neutral" to "calibrated tightening" was a little surprising and triggered initial market reactions.
The rate hike announcement had immediate impact on government bond markets, with yield on the 10-year benchmark government bond rising to a high of 7.26% from its opening level of 7.21% after the governor announced the shift in policy stance. According to Mint, currently, yield on the 10-year paper is trading at around 7.24%, unchanged from its previous close. The market soon recovered some of the losses amid no announcement of additional measures on liquidity such as open market operations or an increase in cash reserve ratio. VRC Reddy, treasury head at Karur Vysya Bank, noted that "For bonds, global yields and crude are now the key signposts. If both peak, the 7.24–7.25% zone for the 10-year g-sec looks attractive, a renewed global shock could push yields towards the 7.35–7.40% peak corridor before value emerges."
Prahlad Krishnamurthi, CEO of Probe42, welcomed the RBI's move, noting that it comes alongside other measures on financial data infrastructure. As reported by CNBC TV18, Krishnamurthi highlighted that the RBI's steps on data infrastructure are significant in a tighter rate environment, as timely and verifiable borrower information becomes increasingly important for lenders and corporates assessing credit risk. The industry expert emphasized that these measures are particularly relevant given current market conditions. Ravi Narayanan, MD & CEO, SMFG India Credit Co. Ltd noted that "Empowering NBFC account aggregation bridges the grassroots credit asymmetry, transforming disciplined underwriting into frictionless financial inclusion."
