It would instead provide an incentive to term out at least some of this funding in a way that reduces the risk of runs. Requiring additional local capital and liquidity buffers, like any prudential regulation, may incrementally increase cost and reduce flexibility of internationally active banks that manage their capital and liquidity on a centralized basis.
The benefit to the financial system will accrue from seamless access of CMS to the Nodal Officers of banks / Financial Service Providers(FSPs). CMS can generate various reports for monitoring and managing complaints pertaining to each entity.