RBI Issues Master Direction on Commercial Paper & Non-Convertible Debentures 2024

Current Context: The Reserve Bank of India (RBI) has issued a Master Direction on Commercial Paper and Non-Convertible Debentures for the year 2024.

• This direction applies to all persons/agencies dealing in Commercial Papers and Non-Convertible Debentures.
• One of the key highlights of this direction is that issuers of Commercial Papers (CPs) and Non-Convertible Debentures (NCDs) are required to disclose information on any payment default through various channels, including publicly disseminating such information through their websites.
• The Reserve Bank of India (RBI) issued the revised Master Direction on Commercial Paper and Non-Convertible Debentures on January 3, 2024.
• These directions will come into effect for the accounting period commencing on or after April 1, 2024.

Question:

Q.1 Who is required to disclose information on payment defaults under the new RBI Master Direction?
a. All participants in the Indian financial market
b. Issuers of government securities
c. Issuers of Commercial Papers and Non-Convertible Debentures (CPs & NCDs)
d. Banks and lending institutions