Thus, new factors have been impinging the assessment of liquidity in recent weeks, which has been reflected in the behaviour of overnight market rates and in the Reserve Bank’s liquidity management operations (Table 3). In the financial markets, the shifts in liquidity flows between the first quarter of 2007-08 and the preceding quarter have imparted considerable volatility.
A ‘Regulatory Sandbox’ would benefit FinTech companies by way of reduced time to launch innovative products at a lower cost. Going forward, the Reserve Bank will set up a regulatory sandbox, for which guidelines will be issued in the next two months. Conclusion 18.