RBI Governor Sanjay Malhotra has called for significant financial market evolution. He addressed the Clearing Corporation of India Ltd during its 25th anniversary. His focus was on expanding currency trading infrastructure beyond traditional pairs. This move aims to support the internationalization of the Indian rupee.
Malhotra emphasized that CCIL must keep pace with global developments. It should lead in offering advanced products and facilities to domestic markets. Staying ahead requires leveraging technology and enhancing risk management capabilities.
He specifically urged exploring new currency pairs. Moving beyond the USD-INR pair is crucial for growth. This expansion will facilitate broader trading and settlement services.
The Governor highlighted the importance of technological advancement. CCIL must push frontiers and provide world-class experiences. Excellence in risk management and facilities will build greater trust.
Malhotra also discussed the CCIL trade repository’s expansion. It now includes offshore banks and related entities of Indian market makers. This data is vital for regulatory decisions and surveillance.
He stressed strengthening the repository through automation. Automated reporting, validations, and anomaly detection are necessary. Compliance checks must be efficient and reliable.
On market liquidity, Malhotra pointed to expanding platform reach. Including wider participants like corporates and non-resident investors enhances liquidity. This addition boosts overall market efficiencies.
He commended CCIL for its entry into GIFT City. Continuous improvement in its product suite is essential. Areas include interest rate derivatives and forex retail.
The RBI Retail Direct platform was also mentioned. Enhancing such offerings supports broader market participation. It aligns with the goal of rupee internationalization.
Malhotra praised CCIL’s journey with the RBI. He described it as a risk management and tech company combined. Their collaboration has shaped India’s financial market infrastructure.
This vision supports a more robust financial ecosystem. Expanding currency pairs will diversify trading options. It reinforces the path toward internationalizing the Indian rupee.
Technology remains at the core of this evolution. Innovation ensures CCIL stays competitive globally. It must offer cutting-edge solutions and maintain trust.
The broader objective is clear. Facilitating trades beyond USD-INR is a strategic priority. It will integrate Indian markets more deeply with the global economy.
Malhotra’s address outlines a forward-thinking roadmap. CCIL’s role is pivotal in this transformation. Their efforts will drive the next phase of market development.