RBI Recognises Second Fintech Self-Regulator, Unveils Corporate Bond Tokenisation Initiative
RWA Signal Insight
InfrastructureThe Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) have launched a joint initiative to explore the tokenization of corporate bonds. This project aims to utilize wholesale Central Bank Digital Currency (wCBDC) for the settlement of these tokenized assets, building upon previous RBI experiments with tokenized certificates of deposit. Governor Sanjay Malhotra emphasized that the initiative's success depends on establishing robust regulatory frameworks for ownership, custody, settlement finality, and cybersecurity. Alongside this, the RBI officially recognized the United FinTech Forum as India's second fintech Self-Regulatory Organisation to foster industry standards and responsible conduct. These developments occur within a broader digital transformation context, as India recorded 280 billion digital transactions in FY2025–26. The central bank is simultaneously developing AI governance and model-risk rules to manage the systemic risks posed by rapidly scaling fintech firms. This dual focus on technological innovation and proportionate regulatory oversight highlights the RBI's strategy to integrate public digital infrastructure with private sector growth. By formalizing self-regulation and testing tokenized debt markets, the RBI is positioning India to modernize its financial infrastructure while maintaining systemic stability.
Key points
- RBI and SEBI launched a joint initiative to tokenise corporate bonds using wholesale CBDC.
- United FinTech Forum was recognized as India's second fintech Self-Regulatory Organisation.
- India recorded 280 billion digital transactions during the FY2025–26 period.
- Regulatory focus includes establishing settlement finality and cybersecurity for tokenized financial assets.
Background
The Reserve Bank of India (RBI) is the central bank responsible for monetary policy and financial supervision in India. It has been actively developing public digital infrastructure, such as the Unified Payments Interface (UPI) and wholesale CBDC, to enhance financial inclusion and modernize settlement systems. A Self-Regulatory Organisation (SRO) is an industry-led body that works alongside statutory regulators to set conduct standards and monitor compliance within specific sectors.