BANKING AFFAIRS

Detailed explanation-1: -View All Site Content. The Clearing Corporation of India Ltd. (CCIL) (CIN: U65990MH2001PLC131804) was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets.

Detailed explanation-2: -NSE Clearing, The Organisation NSE Clearing was the first clearing corporation to be established in India and we introduced settlement guarantee before it became a regulatory requirement.

Detailed explanation-3: -CCIL, set up in April 2001, is a payment system authorized under the Payment and Settlement Systems Act, 2007 and Regulations thereunder by Reserve Bank of India (RBI). It provides clearing & settlement in OTC financial market products, mainly to the wholesale market players which are also regulated entities.

Detailed explanation-4: -The Core Committee, appointed at the behest of Reserve Bank of India for setting up CCIL, identified six ‘core promoters’ for CCIL-State Bank of India, IDBI Bank Ltd. (formerly Industrial Development Bank of India), ICICI Bank Ltd, Life Insurance Corporation of India (LIC), Bank of Baroda and HDFC Bank Ltd.

Detailed explanation-5: -CCIL runs a multilateral netting system for forex inter-bank transactions that nets the members payments and receipts in a currency, though they are due to or from different counterparties and settles the net position on a payment versus payment (PVP) basis in both the legs of the transactions.