Introduction: The Reserve Bank of India (RBI) has recently issued a significant update, marked as RBI/2023-24/125, addressed to all regulated entities. The circular, DoR.FIN.REC.77/03.10.123/2023-24, dated February 22, 2024, unveils a crucial development regarding the inclusion of Clearing Corporation of India Limited as a Financial Information Provider under the Account Aggregator Framework.
Detailed Analysis:
1. RBI Retail Direct Scheme: The circular highlights the initiation of the RBI Retail Direct Scheme on November 12, 2021. This scheme is designed to empower retail investors, providing them with opportunities to invest in Government Securities. Retail investors can open Retail Direct Gilt Accounts with the Bank, granting them access to both primary and secondary markets of Government Securities.
2. Clearing Corporation of India Limited’s Role: A pivotal aspect of this update is the inclusion of Clearing Corporation of India Limited as a Financial Information Provider. This step aims to facilitate the aggregation of financial information related to Government Securities held by retail investors in their Retail Direct Gilt accounts under the RBI Retail Direct Scheme.
3. Modification of Master Direction: To accommodate this significant change, the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, is being modified. This modification underscores the regulatory adaptability to address the evolving landscape of financial services and information aggregation.
Conclusion: In conclusion, the RBI’s decision to include Clearing Corporation of India Limited as a Financial Information Provider under the Account Aggregator Framework reflects a strategic move to enhance the functionality and scope of the RBI Retail Direct Scheme. This development not only expands the avenues for retail investors in Government Securities but also signifies the regulatory commitment to fostering a dynamic and inclusive financial ecosystem. As the Master Direction undergoes modifications, the RBI continues to adapt to the evolving financial landscape, ensuring that its regulatory framework remains robust and responsive.
****
Reserve Bank of India
RBI/2023-24/125
DoR.FIN.REC.77/03.10.123/2023-24 Dated: February 22, 2024
All Regulated Entities of the Bank
Madam/ Dear Sir,
Inclusion of Clearing Corporation of India Limited as a Financial Information Provider under Account Aggregator Framework
Please refer to the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016.
2. The RBI Retail Direct Scheme (‘Scheme’)was launched on November 12, 2021 to facilitate retail investors to invest in Government Securities. The Scheme enables individuals to open Retail Direct Gilt Accounts with the Bank and access the Government Securities market – both primary and secondary. To enable aggregation of financial information on Government Securities held by retail investors in their Retail Direct Gilt accounts under the Scheme, Clearing Corporation of India Limited has been included as a Financial Information Provider.
3. The Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016is being modified accordingly.
Yours faithfully,
(J.P. Sharma)
Chief General Manager
