RBI Governor Urges CCIL to Expand Infrastructure for Currency Trades Beyond USD-INR

RBI Governor Sanjay Malhotra spoke at the 25th anniversary of the Clearing Corporation of India (CCIL) in Mumbai. As per the news reports, he asked CCIL to create infrastructure that allows trading and settlement in currency pairs apart from the US dollar and the rupee.

Rupee Internationalisation

Malhotra linked this suggestion to the policy of internationalising the Indian currency. India has already signed agreements with some countries to conduct trade settlements in local currencies.

He asked CCIL to improve services for retail investors in foreign exchange and government securities. He also said that about 3 lakh investors are enrolled on the RBI Retail Direct platform for government securities.

Market Features in India

India is the only large economy where government securities and repo transactions take place on an anonymous electronic platform. Trade details are released almost in real time. Settlement is done through a central counterparty.

The Governor said India’s trade repository was set up before the G20 recommended reporting of over-the-counter derivatives. He described this as an early step in transparent reporting.

Role of CCIL

CCIL began operations in 2001. It provides clearing and settlement services for different segments of the financial market. Malhotra called it both a risk management and a technology company.

He asked CCIL to use new technologies to improve efficiency, scalability, performance, and cost control. He also said the corporation should continue to expand its product and service offerings.

Read more: SEBI and RBI Discussing Introduction of Corporate Bond Index Derivative!

Conclusion

The Governor’s remarks emphasised two points: expanding beyond USD-INR for currency trades and strengthening facilities for retail investors. CCIL was asked to support both.

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