Well-functioning, liquid and resilient financial markets help monetary policy transmission as well as in allocation and absorption of risks entailed in financing India’s growth.


  • Major market segments under the regulatory ambit of the Reserve Bank are interest rate markets, including Government Securities market and money markets; foreign exchange markets; derivatives on interest rates/prices, repo, foreign exchange rates as well as credit derivatives.

Broad Regulatory Framework and Instruments

Implementation of OTC Market Reforms

Looking Ahead

In order to ensure the robustness and credibility of the financial system and to minimise the risks, the Reserve Bank has designated industry bodies Fixed Income, Money Markets and Derivatives Association of India (FIMMDA) and Foreign Exchange Dealers Association of India (FEDAI) as the benchmark administrators for the Rupee interest rate and foreign exchange benchmarks, respectively. The FIMMDA, FEDAI and Indian Banks Association (IBA) have since jointly floated an independent company for benchmark administration. Benchmark submission activities of banks and PDs including their governance framework for submission are proposed to be brought under the Reserve Bank’s on-site and off-site supervision