BANKING AFFAIRS

Detailed explanation-1: -Clearing Corporation of India Ltd (CCIL): CCIL is a Central Counterparty (CCP) which was set up in April 2001 to provide clearing and settlement for transactions in Government securities, foreign exchange and money markets in the country.

Detailed explanation-2: -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-3: -CCIL is a payment system operator, authorized by the Reserve Bank of India (RBI) under the PSS Act 2007 to provide guaranteed settlement in Government Securities (G-Secs), Triparty Repo (TREP), Forex and Rupee Derivatives market.

Detailed explanation-4: -The clearing corporation receives funds and securities from the clearing banks and depositories for purchase and sale transactions respectively. So, if a clearing member is settling a purchase transaction, then the corporation receives the money in its clearing account via the clearing bank.

Detailed explanation-5: -Clearing: The clearing process involves updating the account values of the involved parties (traders) to ensure that they actually have the funds in the first place and preparing for the exchange of those funds. Settlement: This is the final process where the actual exchange of funds and securities takes place.