RBI MPC Meeting 2024: New Norms for Electronic Trading Platforms on the Horizon
In a landmark 2024 RBI MPC meeting, Governor Shaktikanta Das unveils new regulations for electronic trading platforms, enhancing transparency and efficiency.
The RBI reaffirms its commitment to fostering a conducive environment for the growth and development of electronic trading platforms. As India strides towards a digital future, proactive regulatory measures are essential to navigate the complexities of the digital economy and safeguard the interests of all stakeholders in the pursuit of inclusive and sustainable growth.
The objective is to enhance the safety and security of transactions conducted through the widely used Aadhaar Enabled Payment System (AePS), which facilitates digital payments using Aadhaar identification. Anticipated guidelines will focus on bolstering the customer onboarding verification process for entities overseeing AePS touchpoints. Moreover, there will be an emphasis on integrating risk management protocols to mitigate the occurrence of fraudulent activities.
RBI announced its decision to maintain the repo rate at 6.5%, in line with the expectations of experts. Furthermore, the RBI retained its inflation projection at 5.4% for the fiscal year 2023–2024. This indicates the central bank’s confidence in its ability to manage inflationary pressures within the target range through appropriate monetary policy measures.
Looking ahead, the Consumer Price Index (CPI) inflation is forecasted to stand at 4.5% for the upcoming fiscal year 2024–2025. The quarterly projections depict a nuanced trajectory, with inflation expected to be at 5% in Q1, 4% in Q2, 4.6% in Q3, and 4.7% in Q4. These projections reflect the RBI’s meticulous analysis of various economic indicators and its proactive approach to inflation management
This regulatory framework is positioned to address the evolving challenges posed by technological advancements, such as algorithmic trading and high-frequency trading. By introducing guidelines to govern the use of such technologies, the RBI aims to strike a delicate balance between fostering innovation and ensuring market stability.
– By Kashish Jain
