"The RBI Chief calls for CCIL to adopt innovation and broaden the range of currency pairs, going beyond USD-INR."
In a significant speech at the Clearing Corporation of India Ltd (CCIL)'s 25th anniversary event in Mumbai, the Governor of the Reserve Bank of India, Sanjay Malhotra, highlighted the importance of CCIL in developing infrastructure for trading and settlement of currency pairs beyond the traditional USD-INR. This move, Malhotra stated, would support rupee internationalization.
Malhotra emphasized the need for CCIL to maintain its identity as a risk management institution while continuously reviewing, optimizing, and stress-testing its risk processes as trading volumes grow and new products are introduced. He encouraged CCIL to leverage new technologies to improve efficiency, scalability, security, and turnaround times across markets.
The RBI Governor also urged CCIL to strengthen the RBI Direct and Forex Retail platforms to make investing more accessible to individuals. Malhotra praised these initiatives as steps towards reducing intermediation costs and ensuring a seamless trading experience, particularly for Micro, Small and Medium Enterprises (MSMEs) who are often disadvantaged in traditional forex markets.
Malhotra noted that the RBI Direct platform currently has about three lakh retail holders investing in government securities, indicating potential for increased accessibility and scale. He did not mention any specific new products that CCIL is considering.
Malhotra reminded CCIL of its primary role as a risk management institution and emphasized the need for enhancing retail-focused platforms. He suggested that streamlined onboarding, mobile-first designs, and tighter integration with banks could significantly improve adoption among retail investors.
CCIL has already taken steps in this direction, having piloted mobile-friendly portals. The corporation has also partnered with Bharat Connect to expand its reach. Malhotra, however, did not provide any specific details on how CCIL should improve its risk management processes.
In conclusion, Malhotra's speech at CCIL's 25th anniversary event underscored the importance of the corporation in the financial landscape, emphasizing the need for expansion, improved efficiency, and robust risk management practices.
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