Economics • Banking & FinanceMedium
Which institution acts as the central counterparty for clearing and settling trades in government securities, money market instruments, and foreign exchange in India?
A. Clearing Corporation of India Limited (CCIL)✓ Correct Answer
B. National Payments Corporation of India (NPCI)
C. Securities and Exchange Board of India (SEBI)
D. National Securities Depository Limited (NSDL)
💡 Solution & Explanation
The Clearing Corporation of India Limited was established in 2001 to provide specialized clearing and settlement services for transactions in money markets, government securities, and foreign exchange markets, thereby mitigating counterparty risk. Unlike NPCI, which manages retail payment systems, CCIL operates primarily at the wholesale and institutional financial market level.
More Economics Banking & Finance questions
- Examine the structure of priority sector lending norms mandated for commercial banks in India. Which of the…
- Which of the following financial instruments represents an unsecured money market instrument issued in the…
- What does the term 'Capital Conservation Buffer (CCB)' under Basel III norms require banks to maintain?
- How do District Central Cooperative Banks (DCCBs) function within the rural credit delivery mechanism of…
- Which nationalized commercial bank acts as the lead bank responsible for coordinating credit plans in several…