The proposal for local banks to carry out third-party clearing for the European banks comes on the back of a decision by the European Securities and Markets Authority (ESMA) in October 2022 to de-recognise the Clearing Corporation of India (CCIL). ESMA s step came after the RBI refused to permit the foreign body rights of inspection and audit over the CCIL, which hosts the trading platform and provides guaranteed settlement for Indian government bonds and interest rate derivatives. Pending a resolution of the matter, foreign banks have a deadline of October 2024 to stop transacting with the CCIL.
New Delhi: The '4.56% Government Securities 2023' will be fully repaid on November 29, 2023, without any additional interest after this date, the Ministry of Finance said in a communique on Tuesday.
The outstanding balance of ‘8.83% GOVT. STOCK 2023’ is repayable at par on November 24, 2023 (November 25, 2023 being non-working Saturday). No interest will accrue from the date of maturity of the loan. In the event of a holiday being declared on repayment day by any State Government under the Negotiable Instruments Act, 1881, the Loan/s will be…
Multiple banking sources told ET that the index providers are increasingly tilted in favour of building a large, liquid market as Russia s exclusion has created a gap and skew in volumes.
Synopsis
Covid-19 has made people reluctant to handle cash for fear of infection. The pandemic has also underscored the need to extend timely financial support to people who don’t have bank accounts.
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India’s central bank is opening its balance sheet to the public. Retail investors will have online access to the government bond market via investment accounts with the Reserve Bank.
As the government’s investment bank, the RBI manages institutional buying and selling in gilt securities. Skepticism is high about “Retail Direct” because previous attempts at bringing public debt to the masses haven’t gone anywhere. But if the initiative takes off, it could be a precursor to an interest-paying digital currency competing with bank deposits.