Payment systems are a key component of a modern market economy, and therefore the way they function can have an important bearing on how efficient that economy is. In particular, they can have an important bearing on how well financial markets function. In Europe – and not least in East and Central Europe – this efficiency aspect of payment systems hardly needs spelling out.
Further steps in this direction are enhancing transparency of global Rupee markets through a comprehensive Reporting framework. A desirable outcome would be if market-makers like banks and PDs centralize their global Rupee book in India. Among other benefits, this would improve risk management for Indian and global firms alike and enhance the global role for India’s financial sector. 17.