technological platforms to expand the reach of financial markets, in particular the reach of the rbi retail direct and fx retail. in the derivative markets, efforts are underway to introduce electronic trading platforms for a larger number of derivative products and to expand the central clearing of products. to foster greater efficiency, application programming interfaces ( apis ) for reporting trades to nds - om and accessing the rfq dealing mode are being contemplated. introduction of bond forwards is being considered to enable long - term investors to manage their interest rate risks efficiently – draft guidelines in this regard were issued in december 202341. the reserve bank remains engaged with stakeholders to assess the need for the introduction of new products and infrastructure based on evolving market developments. 28. fifth, bank treasuries need to scale up their dynamism to utilise the opportunities presented in the context of the recent regulatory reforms. this is very critical for achieving efficient market intermediation, effective management of financial risks and alignment of financial variables across different segments and markets. from this financial year ( 2024 - 25 ), the new prudential framework for investment by banks has come into effect. the new draft reserve bank of india ( bond forwards ) directions, 2023 – dated december 28, 2023 regulations provide increased flexibility to banks in managing their treasuries and offer scope for increased efficiency, provided banks manage their treasury function actively. the framework of assessment of a bank ’ s treasury should take into account risks arising out of action and risks arising out of inaction i. e., missed opportunities. 29. sixth, appropriate safeguards should be put in place to address the new challenges posed by new products, participants and markets. for example, as sophisticated otc derivative products are introduced, they must be accompanied by adoption of certain safeguards, both by the market - makers as well as customers. as our markets get integrated with global markets and non - resident participation increases, transmission channels from global developments will become stronger and speedier. this will require greater watchfulness and proactive management of the associated risks by market participants even as the opportunities are grabbed. conclusion 30. to conclude, the reserve bank ’ s efforts in recent years has been to develop the financial markets in a manner that can continue to meet the needs of a growing and globally connected economy while fostering trust, stability and innovation. trust in financial markets has been sought to be promoted through market reforms which have focused on ensuring fair market conduct by preventing market abuse ; fair

in india ( 2007 ) 5 ; ( v ) institutionalisation of the flexible inflation targeting framework ( 2016 ) 6 ; ( vi ) vesting the reserve bank with the authority to regulate housing finance companies through an amendment of the national housing in response to the perceived need for better regulation of the nbfc sector, the reserve bank of india ( rbi ) act, 1934 was amended in 1997, providing for a comprehensive regulatory framework for nbfcs. the rbi ( amendment ) act, 1997 conferred powers on the rbi to issue directions to companies and its auditors, prohibit deposit acceptance and alienation of assets by companies and initiate action for winding up of companies. the government securities act, 2006. the rbi act was amended to insert chapter iii d ( section 45u, v, w and x, ), providing reserve bank the power to regulate transactions in money market, government securities market and the foreign exchange, rupee interest rate and the credit derivative markets. the payment and settlement systems act, 2007 the act was amended in 2016, to provide for a statutory and institutionalised framework for a monetary policy committee, for maintaining price stability, while keeping in mind the objective of growth. bank act, 1987 ( 2019 ) 7 ; ( vii ) strengthening the regulatory framework for cooperative banks by amendment of the banking regulation act, 1949, ( as applicable to cooperative societies ) ( 2020 ) ; and ( viii ) enabling the issuance of the central bank digital currency ( 2022 ) 8. these changing priorities and the quest to keep pace with developments, including technological changes, have been reflected in the reserve bank ’ s organisational structure, examples of which include the setting up of the department of payment and settlement systems ( 2005 ) ; the financial stability unit ( 2010 ), now called the financial stability department ; the financial markets regulation department ( 2014 ) ; the financial market operations department ( 2014 ) ; and the fintech department ( 2022 ). financial markets : fostering trust, stability and innovation 5. let me now focus on the journey of our financial markets, a journey in which the reserve bank has collaborated with many stakeholders including the fimmda and the pdai who have been valuable partners in the reserve bank ’ s endeavor to develop markets, institutions and practices. 6. the onset of the global financial crisis ( 2008 ) altered the way the world looked at financial markets. at that stage, our financial markets were just beginning to develop, buoyed by the needs of a growing economy and in the background