Explore infra for trading beyond $-₹ currency pairs: Malhotra to CCIL

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said the Clearing Corporation of India (CCIL) could explore the possibility of putting in place necessary infrastructure to facilitate trading and settlement services for currency pairs beyond the US dollar and rupee (USD-INR), in line with the broader objective of internationalisation of the rupee.

- ANJALI KUMARI & SUBRATA PANDA

CCIL currently facilitates settlement in USD-INR only.

RBI has been making efforts to internationalise rupee by taking a number of steps including bilateral currency arrangements, rupee trade settlement mechanism, opening of special vostro accounts, etc.

CCIL provides guaranteed settlement of interbank USD-INR foreign exchange trades via the foreign exchange clearing platform.

Additionally, Malhotra said that as new interest rate derivative products are introduced, CCIL could meet and even anticipate market demand and put in place the necessary infrastructure for the larger suite of products.

“It would be important for CCIL to continuously explore and enhance its product and service offerings on the Forex Retail and the RBI Retail Direct, ensuring aseamless customer experience and robust system capabilities,” Malhotra said.

He was speaking at an event organised by CCIL marking its 25-year journey.