Mumbai: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday urged the Clearing Corporation of India Ltd (CCIL) to prepare for the next phase of financial market development by enabling currency trading beyond the traditional dollar-rupee pair, aligning with the broader objective of internationalising the Indian rupee.
Speaking at CCIL’s 25th anniversary celebrations, Malhotra said, “As the market evolves, CCIL must continuously enhance its offerings. In line with the internationalisation of the INR, CCIL could explore the development of infrastructure to facilitate trading and settlement of currency pairs beyond USD-INR.”
He emphasized that CCIL should stay abreast of global developments and take the lead in introducing such products and facilities to the domestic market. Leveraging technology and expanding its role in risk management, he added, would be key to remaining ahead.
“In short, CCIL must push the frontiers of technology, provide world-class facilities and risk management, and further strengthen the trust it has built over the years,” Malhotra noted.
Highlighting the growth of CCIL’s trade repository—which now includes offshore banks and related entities of Indian market makers—he said the data has been instrumental in regulatory decision-making and market surveillance. He stressed the importance of further enhancing the repository through automated reporting, validations, anomaly detection, and compliance checks.
On liquidity, the Governor suggested, “Expanding platform access to a broader set of participants, including corporates and non-resident investors, would boost market liquidity and overall efficiency.”
Malhotra also lauded CCIL’s entry into GIFT City and encouraged continuous enhancement of its product suite, including interest rate derivatives, forex retail services, and RBI Retail Direct.
Applauding CCIL’s partnership with the RBI in shaping India’s financial market infrastructure, he remarked, “It would not be an exaggeration to call CCIL both a risk management company and a technology company rolled into one.”
