Stay updated with breaking news from Accil. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
The continuation of a 14-month tussle with the RBI regarding the oversight of Clearing Corp of India (CCIL) will likely put French and German banks at a severe disadvantage relative to other foreign banks operating in India, especially after the UK formally recognised the local bond clearing house.
Days after the Reserve Bank of India (RBI) and the Bank of England (BoE) reached an agreement on cooperation regarding the Clearing Corporation of India (CCIL), central bank governor Shaktikanta Das called upon other regulators to accept the same principles amid an ongoing tussle with European authorities.
Reserve Bank of India (RBI) and Bank of England (BoE) on Friday signed a Memorandum of Understanding (MoU) concerning cooperation and exchange of information in relation to the Clearing Corporation of India Limited (CCIL).
People aware of the developments said the new Memorandum of Understanding being worked upon by the RBI and UK authorities, including the Bank of England, would essentially communicate a "hands-off" approach towards the CCIL on potentially contentious issues such as rights of audit over the Indian clearing house.
"Banks and CCIL are in talks for the third-party clearing mechanism. In its securities settlement segment, the CCIL permitted certain members to become clearing members in 2020," a source aware of the developments told ET. "Clearing members can take on the European banks as clients and trades can be carried out."