CCIL must embrace innovation, expand currency pairs beyond USD-INR: RBI Chief

Reserve Bank of India (RBI) Governor Sanjay Malhotra has called on the Clearing Corporation of India (CCIL) to widen its scope by building infrastructure to support trading and settlement of currency pairs beyond the traditional USD-INR.

Speaking at CCIL’s 25th anniversary event in Mumbai, Malhotra emphasised the need for enhancing retail-focused platforms. He said the CCIL should strengthen the RBI Direct and Forex Retail platforms to make investing more accessible to individuals. “RBI Direct platform today has about three lakh retail holders directly investing in government securities, but there is ample scope to increase accessibility and scale up participation,” he noted.

Malhotra urged CCIL to take the lead in leveraging new technologies to improve efficiency, scalability, security, and turnaround times across markets. He highlighted that streamlined onboarding, mobile-first designs, and tighter integration with banks could significantly improve adoption among retail investors.

The central bank governor also praised CCIL’s recent initiatives such as partnering with Bharat Connect to expand reach and piloting mobile-friendly portals. These, he said, were “steps in the right direction” toward reducing intermediation costs and ensuring a seamless trading experience, particularly for MSMEs disadvantaged in traditional forex markets.

While encouraging innovation, Malhotra reminded CCIL of its primary role as a risk management institution. As trading volumes grow and new products are introduced, he stressed that CCIL must continuously review, optimise, and stress-test its risk processes. “CCIL’s identity as a risk management institution remains foundational,” Malhotra said, underscoring the need for robust safeguards as the corporation expands its offerings.