European Banks Seek RBI Approval for Third-Party Transaction Model

• European Union banks, including Credit Agricole, SocieteGenerale, Deutsche Bank, and BNP Paribas, are facing hurdles in trading Indian government bonds and derivatives due to a deadlock between their home authorities and Indian policymakers regarding audit oversight rights. The European Securities and Markets Authority (ESMA) de-recognized the Clearing Corp of India (CCIL) in October 2022, prompting the need for alternative clearing mechanisms.
• With a deadline of October 2024 to cease transactions with CCIL, the banks are under pressure to establish the third-party clearing mechanism swiftly.

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Published date : 01 Jun 2024 01:49PM