What changed
RBI issued the Reserve Bank of India (Access Criteria for NDS-OM) Directions, 2024, replacing the 2008 and 2011 circulars. Direct access to the NDS-OM platform is now extended to a broader set of regulated entities, and the process for seeking direct access has been streamlined. Existing direct access granted under the old circulars is deemed to continue under the new directions.
What it means for you
Banks and other eligible entities can now access the government securities trading platform more easily, potentially increasing market participation and liquidity. The streamlined process reduces administrative burden for new applicants. Existing participants need not reapply but must comply with the updated criteria.
What you must do
- Review the new NDS-OM access criteria to ensure your entity qualifies for direct access.
- Update internal compliance procedures to align with the 2024 Directions.
- If seeking new access, follow the streamlined process outlined in the directions or the Master Directions on Payment Systems.
- For existing direct access holders, confirm that your current setup meets the new requirements without needing reapplication.
Who it affects
All participants in the Government Securities market, Banks (including Local Area Banks, Payment Banks, Small Finance Banks, RRBs, cooperative banks), All India Financial Institutions (EXIM Bank, NABARD, NHB, SIDBI, NaBFID), Designated Settlement Banks (DSBs), Entities using Electronic Trading Platforms (ETPs)
What is the effective date of the new NDS-OM access directions?
The directions came into force on October 18, 2024, and apply with immediate effect.
Do existing NDS-OM participants need to reapply for direct access?
No, direct access granted under the old circulars is deemed to continue under the new directions, but participants must comply with the updated criteria.
Which entities are now eligible for direct access to NDS-OM?
The directions expand eligibility to a broader set of regulated entities, including various banks and All India Financial Institutions as defined in the document.