RBI Governor Urges CCIL to Enhance Product Offerings

Reserve Bank of India Governor, Sanjay Malhotra, emphasized the need for the Clearing Corporation of India (CCIL) to broaden its product offerings, aligning with the goal of rupee internationalisation.

Key Points from Malhotra's Address

• Malhotra highlighted the need for CCIL to stay current with market evolution by updating its facilities and products.
  • He suggested that CCIL could explore infrastructure to support trade and settlement services for various currency pairs, not just USD/INR.
• CCIL, currently a centralized data repository for diverse financial products, should leverage emerging technologies.
  • This includes automating processes for trade reporting, anomaly detection, validation, and compliance checks.
• There is a need to extend product access to wider market participants, like corporates and non-resident investors, to boost market liquidity.

Current Initiatives and Future Directions

• In 2019, CCIL launched the FX-retail platform, an electronic trading platform for foreign exchange, drawing average trading volumes of $95 million.
  • Despite its success, Malhotra sees room for improvement in making it more accessible to individuals and MSMEs.
• Banks are encouraged to onboard customers to the FX-retail portal.
• CCIL's partnership with Bharat Connect aims to enhance accessibility and user experience, beginning with a pilot program with select banks and working on a mobile portal.