0, a next‑generation securities holding system that aims to shrink the current settlement lag for bond transactions. Vijay Chandok, NSDL’s managing director, said the upgrade will enable investors to receive tokenised bonds the moment payment is confirmed through the Reserve Bank of India’s central bank digital currency (CBDC). This shift could move settlement from the existing T+2 framework to near‑real‑time, mirroring trends in global markets. Tokenised bonds are digital representations of traditional debt instruments, stored on a blockchain‑like ledger that can be transferred instantly.
By linking the settlement process to the RBI’s CBDC, the system eliminates the need for multiple intermediaries, reducing operational risk and cost. For retail investors, the faster turnaround means quicker access to coupon payments and the ability to reinvest proceeds without waiting days for clearance. The faster settlement could make corporate and government bonds more attractive to the average Indian saver, especially as the Nifty Fixed‑Income Index gains visibility among portfolio managers. However, broader trading of these tokenised assets will hinge on clear regulatory guidance and market participants’ readiness to adopt the new infrastructure.
Analysts expect the Securities and Exchange Board of India (SEBI) to issue detailed norms within the next few months. Investors should monitor announcements from NSDL, RBI and SEBI for the final go‑live date and any changes to settlement fees. Early adopters may benefit from enhanced liquidity and reduced settlement risk, while the overall bond market could see a gradual shift toward digital, instant‑settlement products.