RBI Forms New Technical Committee to Supercharge Financial Markets
The RBI has established the Technical Consultative Committee for Financial Markets to enhance efficiency and resilience in India's financial sectors.
In a strategic move to bridge the gap between the regulator and the regulated, the Reserve Bank of India (RBI) has announced the formation of the Technical Consultative Committee for Financial Markets (TCCFM). This new body is designed to significantly boost engagement with market participants and ensure that India's financial infrastructure keeps pace with a rapidly changing global landscape.
The Driving Force Behind TCCFM
The establishment of the TCCFM follows an earlier announcement made in the Statement on Developmental and Regulatory Policies on October 7, 2026. The central bank noted that the committee is being constituted against the backdrop of evolving financial markets and the need for more robust infrastructure to support them.
The primary objective of the TCCFM is to tackle both policy and operational hurdles across several critical sectors, including:
- Money markets
- Government securities
- Foreign exchange markets
- Derivatives markets
What Will the Committee Actually Do?
The TCCFM is not merely an advisory group but has a comprehensive set of terms of reference aimed at deepening and broadening the reach of Indian financial markets. Its mandate includes:
Enhancing Efficiency and Resilience
The committee will examine the overall functioning, liquidity, and resilience of the aforementioned markets. By identifying "unintended market frictions," the RBI hopes to smooth out operational glitches that could hinder growth.
Infrastructure and Innovation Review
A significant part of the committee's role involves reviewing the entire lifecycle of a trade—from trading and clearing to settlement and reporting. Furthermore, the TCCFM will keep a close eye on international developments, financial innovations, and emerging risks that could impact the domestic economy.
Addressing Macroeconomic Concerns
Beyond routine operations, the committee will act as a sounding board for the RBI, considering specific market issues and broader macroeconomic concerns referred to it by the central bank.
Leadership and Powerhouse Membership
To ensure high-level expertise, the committee will be chaired by the RBI Deputy Governor who is in charge of the Financial Markets Regulation Department (FMRD). The chair will be supported by seven distinguished external members representing top-tier financial institutions and regulatory backgrounds:
- Ananth Narayan: Former Whole Time Member of SEBI and Professor of Practice at IIT Bombay.
- Shamsher Singh: Chairman of FIMMDA and Deputy Managing Director at SBI.
- Neeraj Gambhir: Executive Director at Axis Bank.
- Shailendra Jhingan: Head of Treasury and Economic Research at ICICI Bank.
- Aditya Bagree: Managing Director and Head of Markets at Citibank India.
- Nand Kishore: Managing Director of the Clearing Corporation of India Limited.
- Ridham Desai: Managing Director at Morgan Stanley India.
Operational Timeline
To maintain consistent momentum and oversight, the RBI has mandated that the Technical Consultative Committee for Financial Markets will meet at least once every quarter, ensuring a steady flow of dialogue between the central bank and these industry leaders.