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Third-party transaction model
June 1 , 2024
29 days
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- As many as four European banks have asked the Reserve Bank of India (RBI) to approve a third-party transaction model.
- Credit Agricole, Societe Generale, Deutsche Bank, and BNP Paribas seek to resolve a deadlock between their home authorities and Indian policymakers regarding audit oversight rights.
- The European banks face many hurdles in trading Indian government bonds and derivatives since the European Securities and Markets Authority (ESMA) de-recognised the Clearing Corp of India (CCIL) in October 2022.
- ESMA's decision resulted from the RBI's refusal to grant audit and inspection rights over CCIL.
- These rights oversee local government bond trading and ensures settlement.
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