RBI Governor Sanjay Malhotra has urged the Clearing Corporation of India (CCIL) to expand its services beyond dollar-rupee trades. In a speech at CCIL’s silver jubilee event, Malhotra emphasized the need for CCIL to create settlement infrastructure for other currency pairs, which would help deepen markets and internationalize the rupee. He noted that this is in line with the broader objective of internationalizing the Indian rupee (INR).
Malhotra commended CCIL’s entry into Gift City and expressed his hope that the services and products offered there would continuously improve and expand. He outlined several expectations for the institution, including scaling up its forex platform, which currently handles $95 million in daily trades. To achieve this, he suggested that CCIL should review and optimize its risk processes, and provide better access through banks and mobile solutions.
The governor also emphasized the need for CCIL to keep up with global trends and embrace new technologies such as algorithmic and AI/ML-driven trading, tokenization of assets, peer-to-peer platforms, and mobile apps. He stressed that CCIL should provide a world-class experience, world-class facilities, and world-class risk management to maintain the trust it has built.
Furthermore, Malhotra called for wider participation in CCIL’s platforms, including corporates and non-resident investors, which would enhance market liquidity and add to overall efficiencies. He also sought stronger trade repository systems with automation, anomaly detection, and compliance checks.
CCIL, which is jointly owned by banks, financial institutions, and the RBI, plays a crucial role in supporting the rupee’s global push by acting as the central counterparty for clearing and settlement in government securities, money, forex, and derivatives markets. By expanding its services and embracing new technologies, CCIL can help deepen markets and increase the rupee’s international presence. Overall, Malhotra’s speech highlighted the importance of CCIL’s role in India’s financial system and the need for the institution to innovate and expand its services to support the country’s economic growth.