Regulatory Updates in India
The RBI has retained the overnight weighted average call rate (WACR) as the operating target under its revised liquidity management framework to enhance monetary policy transmission. It has replaced the 14-day Variable Rate Repo (VRR) and Variable Rate Reverse Repo (VRRR) operations with shorter-tenor tools, primarily 7-day operations, while maintaining a symmetric corridor around the repo rate. The framework also introduces advance notice for liquidity operations and aims to improve transparency and flexibility in managing market liquidity.
The Pension Fund Regulatory and Development Authority of India (PFRDA) will allow non-government NPS subscribers to invest up to 100% in equity starting Oct 1, 2025 under a new Multiple Scheme Framework. This framework enables selection of multiple schemes per tier using PAN, removes earlier diversification limits, and introduces tailored schemes including high-risk options. The annual cost is capped at 0.30%, with an additional 0.10% incentive for attracting over 80% new subscribers.
The newly appointed IRDAI Chairman has proposed that the insurance industry consider adopting an expense framework similar to that used in mutual funds. This suggestion comes amid concerns over the rising cost of motor and health insurance policies, largely driven by high commissions. During his first interaction with the sector, insurers discussed the possibility of submitting a proposal to implement such a framework and also suggested disclosing commissions on policies to enhance transparency.
- October 13, 2025
- Press Release : RBI
- 9:06 am