Mumbai: In a strategic push towards the internationalisation of the Indian Rupee (INR), Reserve Bank of India (RBI) Governor Sanjay Malhotra has urged the Clearing Corporation of India Ltd (CCIL) to create infrastructure that facilitates trading in currency pairs beyond the traditional USD-INR.
Speaking at the 25th anniversary celebration of CCIL in Mumbai on Friday evening, Malhotra highlighted the need for forward-looking initiatives that align with India’s evolving financial ambitions.
Push for Broader Currency Pair Trading
Malhotra said that the broader objective of rupee internationalisation necessitates enabling trading and settlement in multiple currency pairs, not just USD-INR.
“Given the broader objective of internationalisation of INR, CCIL could explore the possibility of putting in place necessary infrastructure to facilitate trading and settlement services of currency pairs beyond the USD-INR,” he said.
India has already signed bilateral trade settlement agreements with a few countries in local currencies, as part of a larger de-dollarisation move in global trade.
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Focus on Retail Participation in Forex and G-Secs
Calling for greater retail inclusion, the RBI Governor also asked CCIL to enhance its offerings for individual investors in the foreign exchange (Forex) and government securities (G-Secs) markets.
“CCIL should continuously explore and enhance its product and service offerings on the Forex Retail and RBI Retail Direct platforms to ensure a seamless customer experience,” he said.
Currently, over 3 lakh retail investors are registered on the G-Sec trading platform, reflecting growing public interest in sovereign debt instruments.
India’s Market Infrastructure Among World’s Most Advanced
Malhotra highlighted that India remains the only major economy where government securities and repo transactions are traded anonymously on an electronic trading platform with real-time information dissemination and efficient settlement through a central counterparty.
He further noted that India’s trade repository for over-the-counter (OTC) derivatives was operational even before the G20’s recommendations came into effect — a testament to the country’s proactive regulatory stance.
Technology and Risk Management: Core Pillars of CCIL
Referring to CCIL as a “risk management company and a tech company rolled into one,” Malhotra emphasized the importance of embracing emerging technologies to improve efficiency, reduce costs, and bolster scalability and security.
He urged the organization, which was founded in 2001, to remain innovative and agile in its operations to support India’s growing financial ecosystem.
RBI’s Priorities: Stability, Growth, and Trust
Concluding his address, Governor Malhotra reaffirmed the RBI’s commitment to stability, growth, and trust, noting that these values also align with CCIL’s evolving mission.
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