Economics • Banking & FinanceMedium
What is the primary operational role of the 'Clearing Corporation of India Limited (CCIL)'?
A. Clearing and settlement of trades in money, government securities, and foreign exchange markets✓ Correct Answer
B. Providing direct retail loans to agricultural cooperatives
C. Regulating all Non-Banking Financial Companies in India
D. Determining the statutory minimum wages across states
💡 Solution & Explanation
Clearing Corporation of India Limited was established in 2001 to provide guaranteed clearing and settlement services for transactions in money, government securities, and foreign exchange markets, mitigating counterparty risks. Incorrect choices like providing direct retail loans or regulating NBFCs fall under commercial banks and the Reserve Bank of India respectively. CCIL acts as a central counterparty for the wholesale debt market in India.
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