Brief Overview:

RBIs latest policy measures target, strengthening customer protection, ensuring suitability in the distribution of financial products, and enhancing flexibility in the foreign exchange market framework.

Technical Details:

Key Highlights

1) New instructions proposed to be issued on advertising, marketing and sales of financial products and services to ensure suitability of third‑party financial products for customer needs of banks.

2) A discussion paper proposed on introducing calibrated safeguards to enhance customer protection in digital payment systems.

3) A regulatory framework for Authorised Dealers (ADs), offering greater flexibility in forex products, risk management, and platforms, with draft directions to be released for public consultation.

Takeaways:

RBI is rolling out major reforms to strengthen consumer protection, curb mis‑selling, enable new derivative products, and modernise the foreign exchange framework. Collectively, these measures aim to enhance market efficiency, transparency, and ease of doing business.

For further details, please see:

⁠Statement on Developmental and Regulatory Policies

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