RBI Forms New Advisory Panel for India’s Financial Markets

The Reserve Bank of India (RBI) has established a Technical Consultative Committee for Financial Markets (TCCFM) to advise the central bank on the functioning, regulation and resilience of India’s financial markets. The panel brings together senior Banking executives, financial market specialists and representatives from key market institutions.

The move comes at a time when financial markets and their supporting infrastructure are undergoing rapid changes. Through the committee, the RBI aims to create a structured mechanism for engaging market participants on policy and operational issues affecting money markets, government securities markets and foreign exchange markets, along with their associated derivatives markets.

The committee will be chaired by the RBI Deputy Governor responsible for the Financial Markets Regulation Department (FMRD). Its external members include representatives from banks, market infrastructure institutions, financial research and the securities market.

The appointments bring together professionals with experience in financial regulation, treasury operations, market development, clearing and settlement, and global investment. The RBI’s approach reflects an effort to incorporate perspectives from different parts of the financial system while examining emerging risks and regulatory challenges.

Who are the members of the RBI’s financial markets advisory panel?

The committee includes several prominent figures from India’s banking and financial services industry, alongside experts with experience in securities regulation and financial research.

Among the appointed members is Ananth Narayan, a former Whole Time Member of the Securities and Exchange Board of India (SEBI) and Professor of Practice at IIT Bombay. His experience in securities regulation and financial markets adds an important perspective to the committee’s discussions.

Shamsher Singh, Chairman of the Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Deputy Managing Director of the State Bank of India, has also been appointed. His involvement brings experience from the fixed-income, money market and derivatives segments.

Neeraj Gambhir, Executive Director of Axis Bank, is another member of the panel. The other appointments include Shailendra Jhingan, Head of Treasury and Economic Research at ICICI Bank, and Aditya Bagree, Managing Director and Head of Markets at Citibank India.

The committee also includes Nand Kishore, Managing Director of the Clearing Corporation of India Ltd, and Ridham Desai, Managing Director of Morgan Stanley India.

The combination of banking executives, market infrastructure representatives, financial researchers and securities market professionals is intended to provide the RBI with a broader understanding of how different parts of the financial system operate and interact.

Why has the RBI constituted the committee?

The establishment of the TCCFM follows the announcement made in the RBI’s Statement on Developmental and Regulatory Policies dated October 7, 2026.

The central bank’s decision reflects the growing complexity and interconnectedness of financial markets. Changes in market practices, financial products, trading systems and settlement infrastructure can create new operational and regulatory challenges. These developments require regulators to remain engaged with institutions and participants that work directly within the markets.

A structured consultation mechanism can help the RBI understand how regulatory decisions affect market operations. It can also provide an opportunity for financial institutions and market participants to highlight implementation challenges, identify operational bottlenecks and share suggestions on improving market efficiency.

Rather than limiting discussions to banks or individual financial associations, the committee brings together representatives from several segments of the financial system. This wider composition is intended to help the central bank consider different perspectives while evaluating policy and regulatory issues.

Wide-ranging mandate covering money, government securities and forex markets

The TCCFM has been assigned a broad mandate covering the functioning, efficiency, liquidity and resilience of India’s major financial markets. These include money markets, government securities markets, foreign exchange markets and their related derivatives markets.

One of its responsibilities will be to identify measures that can deepen and broaden these markets. Market depth and liquidity are important because they influence how efficiently participants can buy and sell financial instruments without causing significant price movements.

The committee will also examine issues affecting market resilience. This includes considering whether existing market arrangements and operational systems are sufficiently equipped to handle changing financial conditions and emerging risks.

Its work will cover both the performance of financial markets and the infrastructure supporting them. This distinction is important because efficient markets depend not only on trading activity but also on reliable systems for processing and completing transactions.

Focus on trading, clearing and settlement infrastructure

A significant part of the committee’s mandate concerns financial market infrastructure, including trading, clearing, settlement and reporting mechanisms. It will examine the regulatory and operational frameworks governing these activities.

Trading systems allow market participants to buy and sell financial instruments, while clearing and settlement arrangements help ensure that transactions are completed properly. Reporting mechanisms also support transparency and provide information needed for market oversight.

Operational weaknesses or bottlenecks in these systems can affect liquidity, market confidence and the orderly completion of transactions. As financial markets become more interconnected, disruptions in one part of the infrastructure can also have wider implications.

By bringing these issues within the committee’s scope, the RBI can draw on the practical experience of institutions involved in operating and supporting financial markets. The participation of the Clearing Corporation of India Ltd, alongside banking and market representatives, adds expertise in the infrastructure that supports financial transactions.

Panel to examine regulatory changes and emerging operational challenges

The committee will also examine emerging policy and operational challenges, including the implementation of measures introduced by the central bank. Its mandate includes identifying unintended market frictions that may arise when regulatory decisions are put into practice.

Regulatory measures can affect different market participants in different ways. While a policy may be designed to improve market stability or strengthen oversight, its implementation can sometimes create practical difficulties for institutions operating in the market.

The TCCFM will provide a forum where participants can bring such issues to the RBI’s attention and suggest possible improvements. This could help the central bank understand the practical consequences of its decisions and assess whether adjustments are needed.

The committee’s role in examining operational challenges is particularly relevant as financial institutions adapt to changing market conditions, evolving infrastructure and new financial products.

Regular meetings to support structured engagement

The RBI intends to position the TCCFM as a regular platform for engagement rather than an occasional consultation arrangement. The committee will meet at least once every quarter, creating a recurring channel for discussions between the central bank and external stakeholders.

Regular meetings could allow members to discuss developments affecting financial markets, review operational concerns and examine issues referred to them by the RBI. The central bank may also place specific market-related issues and macroeconomic considerations before the panel for examination.

The committee will consider domestic and international developments, financial innovations and emerging risks that could have implications for India’s financial markets. This will allow its discussions to extend beyond immediate operational concerns and cover broader changes in the financial environment.

However, the RBI’s announcement does not specify whether the committee’s recommendations will be binding. It also does not clarify whether the panel’s deliberations or recommendations will be made public.

What could the committee mean for India’s financial markets?

The formation of the TCCFM creates a formal channel through which market expertise can contribute to the RBI’s regulatory and operational discussions. Its broad membership could help the central bank assess issues from the perspectives of banks, market infrastructure providers, financial researchers and global investment institutions.

For financial markets, the potential benefits will depend on how effectively the committee identifies practical problems and helps develop workable solutions. Discussions on trading, clearing, settlement and reporting systems could contribute to improvements in the infrastructure that supports market activity.

Its focus on liquidity, efficiency and market resilience also places attention on the broader functioning of India’s money, government securities and foreign exchange markets. Identifying measures to deepen these markets could form an important part of its work.

The committee may also help improve communication between regulators and market participants. A regular consultation process can give institutions an opportunity to explain how policy changes affect their operations, while allowing the RBI to consider feedback before addressing emerging issues.

Implementation will determine the panel’s effectiveness

Although the committee’s establishment marks an institutional step towards wider consultation, its effectiveness will ultimately depend on the quality of its discussions and the action taken on the issues it examines.

The larger test will be whether its work contributes to more efficient markets, stronger financial infrastructure, deeper liquidity and a regulatory framework that can respond to emerging risks. Regular meetings will provide an opportunity to identify challenges, but meaningful improvements will depend on how recommendations and practical concerns are considered by the central bank.

By bringing together banking leaders, market institutions, financial experts and global investment experience, the RBI is seeking to broaden the discussion around India’s financial market architecture. The TCCFM is intended to strengthen the connection between regulatory decision-making and the practical realities of market operations as India’s financial system continues to evolve.