Why is it in the News?

The Reserve Bank of India (RBI) and the Bank of England (BoE) on Friday signed a Memorandum of Understanding (MoU) concerning cooperation and exchange of information in relation to the Clearing Corporation of India Ltd (CCIL).

About Clearing Corporation of India Limited (CCIL):

• The Clearing Corporation of India Ltd. (CCIL) was set up in April 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange, and Derivative markets.
• Objective: The prime objective has been to improve efficiency in the transaction settlement process, insulate the financial system from shocks emanating from operations-related issues, and undertake other related activities that would help to broaden and deepen the money, debt, and forex markets in the country.
• Promoters of CCIL: State Bank of India, IDBI Bank Ltd, ICICI Bank Ltd, Life Insurance Corporation of India (LIC), Bank of Baroda, and HDFC Bank Ltd.
• The company was incorporated with an authorised equity share capital of Rs. 50 crores.
• CCIL’s adherence to the stringent principles governing its operations as a Financial Market Infrastructure (FMI) has resulted in its recognition as a Qualified Central Counterparty (QCCP) by the Reserve Bank of India in 2014.
• CCIL is also the trade repository for all OTC transactions in the Forex, Interest Rate, and Credit derivative transactions.
• Through its fully owned subsidiary, Clearcorp Dealing Systems Limited (CDSL), CCIL has introduced various platforms for the electronic execution of deals in various market segments.
• Further, CDSL has developed, implemented, and manages the NDS-OM, the RBI-owned anonymous electronic trading system for dealing in G-Secs and also for reporting OTC deals, as well as the NDS-CALL platform, which facilitates electronic dealing in the Call, Notice & Term Money market.