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This Statement sets out various developmental and regulatory policy measures relating to (i) Financial Markets; (ii) Regulations; and (iii) Payment Systems and Fintech.

I. Financial Markets

1. Review of the Regulatory Framework for Electronic Trading Platforms

In October 2018, the Reserve Bank had put in place a regulatory framework for electronic trading platforms (ETPs) for executing transactions in financial instruments regulated by it. Under the framework, which aimed to ensure fair access through transparent, safe, and efficient trading processes, robust trading infrastructures and prevent market abuse, thirteen ETPs operated by five operators have since been authorised. Over the last few years, there has been increased integration of the onshore forex market with offshore markets, notable developments in the technology landscape and an increase in product diversity. Market makers have also made requests to access offshore ETPs offering permitted Indian Rupee (INR) products. In view of these developments, it has been decided to review the regulatory framework for ETPs. The revised regulatory framework will be issued separately for public feedback.

2. Hedging of Gold Price Risk in the Over the Counter (OTC) Market in the International Financial Services Centre (IFSC)

With a view to providing flexibility to resident entities to hedge their exposures to gold price risk efficiently, resident entities were permitted, in December 2022, to access recognised exchanges in the International Financial Services Centre (IFSC). It has now been decided to also allow them to hedge the price of gold in the over the counter (OTC) segment in the IFSC. This will provide resident entities more flexibility and easier access to derivative products in hedging their exposure to gold prices. The related instructions are being issued separately.

II. Regulations

3. Key Fact Statement (KFS) for Retail and MSME Loans & Advances

The Reserve Bank has announced several measures in the recent past to foster greater transparency and disclosure by the regulated entities (REs) in pricing of loans and other charges levied on the customers. One such measure is the requirement for lenders to provide their borrowers a Key Fact Statement (KFS) containing the key information regarding a loan agreement, including all-in-cost of the loan, in simple and easy to understand format. Currently KFS is specifically mandated in respect of loans by scheduled commercial banks to individual borrowers; digital lending by REs; and microfinance loans. Now, it has been decided to mandate all REs to provide the ‘Key Fact Statement’ (KFS) to the borrowers for all retail and MSME loans. Providing critical information about the terms of the loan agreement, including all-inclusive interest cost, shall greatly benefit the borrowers in making an informed decision.

III. Payment Systems and Fintech

4. Enhancing the Robustness of AePS

Aadhaar Enabled Payment System (AePS), operated by NPCI, enables customers to perform digital payment transactions in assisted mode. In 2023, more than 37 crore users undertook AePS transactions, which points to the important role played by AePS in financial inclusion. To enhance the security of AePS transactions, it is proposed to streamline the onboarding process, including mandatory due diligence, for AePS touchpoint operators, to be followed by banks. Additional fraud risk management requirements will also be considered. Instructions in this regard shall be issued shortly.

5. Principle-based Framework for Authentication of Digital Payment Transactions

Over the years, the Reserve Bank has prioritised security of digital payments, in particular the requirement of Additional Factor of Authentication (AFA). Though RBI has not prescribed any particular AFA, the payments ecosystem has largely adopted SMS-based One Time Password (OTP). With innovations in technology, alternative authentication mechanisms have emerged in recent years. To facilitate the use of such mechanisms for digital security, it is proposed to adopt a principle-based “Framework for authentication of digital payment transactions”. Instructions in this regard will be issued separately.

6. Introduction of Programmability and Offline Functionality in Central Bank Digital Currency (CBDC) Pilot

The CBDC Retail (CBDC-R) pilot currently enables Person to Person (P2P) and Person to Merchant (P2M) transactions using Digital Rupee wallets provided by pilot banks. It is now proposed to enable additional use cases using programmability and offline functionality. Programmability will permit users like, for instance, government agencies to ensure that payments are made for defined benefits. Similarly, corporates will be able to program specified expenditures like business travel for their employees. Additional features like validity period or geographical areas within which CDBC may be used can also be programmed. Second, it is proposed to introduce an offline functionality in CBDC-R for enabling transactions in areas with poor or limited internet connectivity. Multiple offline solutions (proximity and non-proximity based) across hilly areas, rural and urban locations will be tested for this purpose. These functionalities will be introduced through the pilots in a gradual manner.

Department for Promotion of Industry and Internal Trade (DPIIT) is the Nodal Department for coordinating the initiatives under Ease of Doing Business which are aimed at creating a conducive business environment. Some of the steps taken by DPIIT in enhancing ease of doing business are as under:

India ranks 63rd in the World Bank’s Doing Business Report (DBR), 2020 published in October, 2019 before its discontinuation by the World Bank. India’s rank in the DBR improved from 142^nd in 2014 to 63^rdin 2019, registering a jump of 79 ranks in a span of 5 years.

DPIIT is spearheading the dynamic reform exercise of Business Reforms Action Plan (BRAP), wherein all the States and UTs in the country are assessed on the basis of reforms implemented by them on designated parameters. The focus of the reforms has been on streamlining the existing regulations and processes and eliminating unnecessary requirements and procedures. BRAP covers reform areas such as Information Wizard, Single Window Systems, Online Building Permission System, Inspection Reforms, Labour Reforms, etc. BRAP exercise has helped in building knowledge base as well as instilling competition within states/ UT’s in improving their business environment.

DPIIT also coordinates with Ministries/Departments and States/UTs for initiatives to reduce compliance burden on citizen and business activities. The objective of this exercise is to improve Ease of Doing Business and Ease of Living by Simplifying, Rationalizing, Digitizing and Decriminalizing Government to Business and Citizen Interfaces across Ministries/States/UTs.

The key focus areas of the initiative are:

(i) Simplification of procedures related to applications, renewals, inspections, filing records, etc.

(ii) Rationalization of legal provisions, by repealing, amending or omission of redundant laws,

(iii) Digitization of government processes by creating online interfaces, and

(iv) Decriminalization of minor, technical or procedural defaults.

The Jan Vishwas (Amendment of Provisions) Act, 2023 was passed in Lok Sabha on 27th July 2023 and Rajya Sabha on 2nd August 2023. The Assent of the President was received on 11th August 2023. The Act decriminalized 183 provisions of 42 Central Acts administered by 19 Ministries/Departments.

The Act has helped in rationalizing criminal provisions and ensuring that citizens, businesses and the government departments operate without fear of imprisonment for minor, technical or procedural defaults. The Act has paved the way for rationalizing laws, eliminating barriers and bolstering growth of businesses.

This information has been provided by the Union Minister of State for Commerce and Industry, Shri Som Parkash in a written reply in the Lok Sabha today.

Recently GST portal introduced GST payment through Credit Card, Debit Card, and UPI facilities for the 20 states.

Those state are;

1. Assam             2. Delhi                       3. Goa             4. Gujarat

2. Haryana           6. Himachal Pradesh   7. Kerala          8. Madhya Pradesh
3. Maharashtra    10. Odisha

Now, as per recent tweet from Goods and Service Tax Network (GSTN) 4 more states added for Credit Card, Debit Card, and UPI facilities:

These states are;

1. Jharkhand                                        2. Karnataka

3. Rajasthan                                        4. Tripura

The Agricultural & Processed Food Products Export Development Authority (APEDA), a statutory organization under the administrative control of the Department of Commerce, has the mandate to promote export of agricultural products, including millets, from India. APEDA provides assistance to its registered exporters, including those of millets, under Agriculture & Processed Food Export Promotion Scheme of APEDA. The assistance is provided under various components of the schemes viz. Infrastructure Development, Quality Development and Market Development. Buyer-Seller Meets (BSMs) are organized in the clusters to provide export-market linkages. Regular interactions, through video conferences, are held with the Indian Missions abroad, to assess and tap export opportunities. Country specific BSMs, through Indian Missions, are also organized.   

State-wise details of India’s millet exports during the year 2022-23 are given below.

The year 2023 was celebrated as the International Year of Millets (IYM – 2023). The Government of India has taken a proactive multi-stakeholder engagement approach (engaging various central government Ministries/Departments, States/UTs, farmers, start-ups, exporters, retail businesses, hotels, Indian Embassies etc.) to achieve the objectives of IYM 2023 and taking Indian millets globally.

The Government of India has organized various events to make it peoples' movement so that the Indian millets, recipes, value added products be promoted globally. Millets were promoted during the G20 presidency in India, Millet Culinary carnival, International Trade Events, Chefs Conference, exhibition of Farmers Producer Organizations (FPOs), road shows, kisan melas, Chef's training for paramilitary forces, ASEAN India Millet Festival at Indonesia and Delhi etc.

To make India a global hub for 'Shree Anna', the Indian Institute of Millets Research (IIMR), Hyderabad has been declared as the Global Centre of Excellence for sharing best practices, research and technologies at the national and international level. IIMR is providing training to the farmers, women farmers, home makers, students and young entrepreneurs on manufacturing of value-added millet food products, daily recipes etc., and supporting them to establish self-enterprise. The institute has also developed value-added technologies, including "Ready to Eat" and "Ready to Cook" for millet foods. Other steps taken in this regard are branding of millet foods under "Eatrite" tag; holding of awareness programmes; and promoting agribusiness incubator and technology business incubators etc.

In continuation to the efforts towards mainstreaming millets, a 'Millets Experience Centre (MEC)' has been opened at Dilli Haat, INA, New Delhi with an aim to raise awareness on Millets and encourage its adoption among general public. To encourage consumption of Shree Anna among government employees, all Government offices have been advised to include Shree Anna snacks in departmental trainings/meetings and Shree Anna based food items in departmental canteens.

The Government has been working to leverage partnerships with start-ups, academic & research institutions, Indian missions, processors, retailers and exporters to promote Indian millets in the global markets. An Export Promotion Forum (EPF) dedicated to promoting millets in the international market has been established. A separate millet-specific web portal has been developed containing information about millets, their health benefits, production and export statistics, millet exporter’s directory etc. APEDA has also organized a comprehensive global marketing campaign showcasing India’s potential and accordingly E-catalogues of 30 importing countries and 21 millet producing states have been released.

A Virtual trade fair (VTF) for millets has been developed and made available for exporters and importers from across the globe providing a single platform to interact and negotiate business deals. VTF is operational for 24X7, 365 days.