• About Us
  • Contact Us
Tuesday, February 7, 2023
  • Login
  • Register
B2B Infomedia
No Result
View All Result
  • Home
  • Fintech
    Credit card numbers continue to slip after RBI’s deactivation order

    Digital economy push offers hope for multiple players: Mastercard

    PayU reports over 50% jump in revenue, clocks net profit of Rs 126 crore

    Paytm Payments Bank gets final RBI nod to operate as Bharat Bill Payment Operating Unit

    Indian Bank to hold vostro A/cs of 3 Sri Lankan banks

    Indian Bank expands digital offerings under ‘Project WAVE’ initiative

    India records over 23 billion digital payments worth Rs 38.3 lakh crore in Q3

    Cabinet approves promotional incentives worth Rs 2,600 crore for Rupay debit cards, low value UPI transactions

    RBI response sought on PIL seeking uniform banking code for forex transactions

    Reserve Bank of India puts on hold NUE licensing

    Fresh KYC process can be done through video, says RBI

    Fresh KYC process can be done through video, says RBI

  • BFSI
    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Our loans to Adani Group are secure: JK Bank

    Standard Chartered stops lending against Adani dollar bonds amid volatility

    Axis Bank enters into revised pact with Max Financial Services for acquiring additional 7% stake in Max Life

    Axis Bank says exposure to Adani Group at 0.94 pc of total loans

    SBI says further financing to Adani projects to be evaluated on merit

    SBI says further financing to Adani projects to be evaluated on merit

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Our loans to Adani Group are secure: JK Bank

    Our loans to Adani Group are secure: JK Bank

  • Education
    Education ministry sets up panel to strengthen assessment, accreditation of higher educational institutions

    Thousands of orphans will get opportunity to study at DU free of cost: VC

    Increase in SC, ST and OBC students enrolment in higher education institutions: AISHE 2020-21

    Increase in SC, ST and OBC students enrolment in higher education institutions: AISHE 2020-21

    AISHE 2020-21: Enrolment of Muslim students for higher education decreases to 4.6%

    AISHE 2020-21: Enrolment of Muslim students for higher education decreases to 4.6%

    IIM Raipur introduces executive certificate programme for Strategic Chief Marketing officers

    IGNOU launches PG diploma Journalism; course available in three languages

    UPCON and Jadooz to set up edutainment centres called ‘Magic Rooms’ in rural Uttar Pradesh

    School dropout rate declines, gender parity improves: Economic Survey

    Entry of foreign varsities in India will lead to healthy competition: Private Universities’ VCs

    Gender gap in undergraduate programmes widens, gains of last few years lost to pandemic: AISHE Report

  • Enterprise
    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Our loans to Adani Group are secure: JK Bank

    Standard Chartered stops lending against Adani dollar bonds amid volatility

    Axis Bank enters into revised pact with Max Financial Services for acquiring additional 7% stake in Max Life

    Axis Bank says exposure to Adani Group at 0.94 pc of total loans

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Our loans to Adani Group are secure: JK Bank

    Our loans to Adani Group are secure: JK Bank

    SBI sees 14%-15% corporate credit growth in FY23

    SBI, BoB say Adani exposure within limits, payments on track

  • Technology
    Web Werks – Iron Mountain JV launches its First Greenfield Data Center in Mumbai

    Web Werks – Iron Mountain JV launches its First Greenfield Data Center in Mumbai

    New Course by IITs: BTech in Computational Engineering

    New Course by IITs: BTech in Computational Engineering

    Niti Aayog’s AIM, CBSE, Intel India collaborate to bring change in education sector

    Niti Aayog’s AIM, CBSE, Intel India collaborate to bring change in education sector

    Indian Bank to hold vostro A/cs of 3 Sri Lankan banks

    Indian Bank expands digital offerings under ‘Project WAVE’ initiative

    India records over 23 billion digital payments worth Rs 38.3 lakh crore in Q3

    Cabinet approves promotional incentives worth Rs 2,600 crore for Rupay debit cards, low value UPI transactions

    Amid layoffs, American tech giants recruit less from IITs in 2022-23 placement season

    Amid layoffs, American tech giants recruit less from IITs in 2022-23 placement season

  • Events
    • Upcoming Events
    • Past Events
  • Home
  • Fintech
    Credit card numbers continue to slip after RBI’s deactivation order

    Digital economy push offers hope for multiple players: Mastercard

    PayU reports over 50% jump in revenue, clocks net profit of Rs 126 crore

    Paytm Payments Bank gets final RBI nod to operate as Bharat Bill Payment Operating Unit

    Indian Bank to hold vostro A/cs of 3 Sri Lankan banks

    Indian Bank expands digital offerings under ‘Project WAVE’ initiative

    India records over 23 billion digital payments worth Rs 38.3 lakh crore in Q3

    Cabinet approves promotional incentives worth Rs 2,600 crore for Rupay debit cards, low value UPI transactions

    RBI response sought on PIL seeking uniform banking code for forex transactions

    Reserve Bank of India puts on hold NUE licensing

    Fresh KYC process can be done through video, says RBI

    Fresh KYC process can be done through video, says RBI

  • BFSI
    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Our loans to Adani Group are secure: JK Bank

    Standard Chartered stops lending against Adani dollar bonds amid volatility

    Axis Bank enters into revised pact with Max Financial Services for acquiring additional 7% stake in Max Life

    Axis Bank says exposure to Adani Group at 0.94 pc of total loans

    SBI says further financing to Adani projects to be evaluated on merit

    SBI says further financing to Adani projects to be evaluated on merit

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Our loans to Adani Group are secure: JK Bank

    Our loans to Adani Group are secure: JK Bank

  • Education
    Education ministry sets up panel to strengthen assessment, accreditation of higher educational institutions

    Thousands of orphans will get opportunity to study at DU free of cost: VC

    Increase in SC, ST and OBC students enrolment in higher education institutions: AISHE 2020-21

    Increase in SC, ST and OBC students enrolment in higher education institutions: AISHE 2020-21

    AISHE 2020-21: Enrolment of Muslim students for higher education decreases to 4.6%

    AISHE 2020-21: Enrolment of Muslim students for higher education decreases to 4.6%

    IIM Raipur introduces executive certificate programme for Strategic Chief Marketing officers

    IGNOU launches PG diploma Journalism; course available in three languages

    UPCON and Jadooz to set up edutainment centres called ‘Magic Rooms’ in rural Uttar Pradesh

    School dropout rate declines, gender parity improves: Economic Survey

    Entry of foreign varsities in India will lead to healthy competition: Private Universities’ VCs

    Gender gap in undergraduate programmes widens, gains of last few years lost to pandemic: AISHE Report

  • Enterprise
    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

    Our loans to Adani Group are secure: JK Bank

    Standard Chartered stops lending against Adani dollar bonds amid volatility

    Axis Bank enters into revised pact with Max Financial Services for acquiring additional 7% stake in Max Life

    Axis Bank says exposure to Adani Group at 0.94 pc of total loans

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Our loans to Adani Group are secure: JK Bank

    Our loans to Adani Group are secure: JK Bank

    SBI sees 14%-15% corporate credit growth in FY23

    SBI, BoB say Adani exposure within limits, payments on track

  • Technology
    Web Werks – Iron Mountain JV launches its First Greenfield Data Center in Mumbai

    Web Werks – Iron Mountain JV launches its First Greenfield Data Center in Mumbai

    New Course by IITs: BTech in Computational Engineering

    New Course by IITs: BTech in Computational Engineering

    Niti Aayog’s AIM, CBSE, Intel India collaborate to bring change in education sector

    Niti Aayog’s AIM, CBSE, Intel India collaborate to bring change in education sector

    Indian Bank to hold vostro A/cs of 3 Sri Lankan banks

    Indian Bank expands digital offerings under ‘Project WAVE’ initiative

    India records over 23 billion digital payments worth Rs 38.3 lakh crore in Q3

    Cabinet approves promotional incentives worth Rs 2,600 crore for Rupay debit cards, low value UPI transactions

    Amid layoffs, American tech giants recruit less from IITs in 2022-23 placement season

    Amid layoffs, American tech giants recruit less from IITs in 2022-23 placement season

  • Events
    • Upcoming Events
    • Past Events
No Result
View All Result
B2B Infomedia
No Result
View All Result
Home BFSI

RBI puts onus on EU banks to resolve stalemate with ESMA

This was conveyed at a meeting between senior officials of the MNC banks and RBI deputy governor T. Rabi Sankar on November 11

Prashant Dwivedi by Prashant Dwivedi
November 17, 2022
in BFSI
A A
0
RBI imposes Rs 1.76 crore penalty on Vakrangee for non-compliance with regulations
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter

Reserve Bank of India (RBI) has put the onus on European Union banks to resolve the stalemate caused by the European Securities & Markets Authority’s (ESMA) decision to disqualify key Indian institutions which act as central counterparties (CCPs) in securities, money market, and forex transactions.

This was conveyed at a meeting between senior officials of the MNC banks and RBI deputy governor T Rabi Sankar on November 11.

“RBI’s stand is clear. The new rules which have become a bone of contention were not introduced by RBI. They did not originate in India but have emanated from jurisdictions and countries where these MNC banks are headquartered,” said an official of a large European bank.

Need for a Plan B
“So, the foreign banks should sort out (the matter) with their respective regulators and authorities to find a way out,” said the official.

“RBI is expected to hold more meetings on the subject,” said another banker.

According to banking circles, as of now it is evident that RBI is not comfortable with the dual regulatory arrangement; and under the circumstances European banks in India would have to think of a plan B to carry out their regular treasury operations.

The RBI spokesman did not comment on the matter.

As part of risk mitigating measures laid down in the wake of the 2008 financial meltdown, ESMA would carry out on-site inspection of all CCPs that European banks deal with anywhere in the world – a rule that RBI finds unacceptable as it boils down to a foreign regulator exercising supervisory power in CCPs which are outside its jurisdiction.

If RBI sticks to its stand, EU banks will have to cut bilateral deals with other banks, avoiding the Clearing Corporation of India (CCIL) which serves as a CCP that takes over the clearing and settlement risk in transactions like government bond trade, foreign exchange forwards, repos, and interest rate swaps.

“The advantage of putting trades through CCIL is that the counterparty risk is taken over by the CCIL which lowers the capital requirement for the bank. But bilateral deals would mean higher capital as the counterparty will be a bank carrying a higher risk weight. The risk weight will be higher if it’s from a country with a lower sovereign rating,” said a banker.

SHIELDING EQUITY MARKET

However, while it’s possible to do bilateral trades in bonds and currency and interest rate derivatives, a CCP is unavoidable in trades done on stock exchanges. For instance, Deutsche Bank, which is a large custodian for foreign portfolio investors, has to deal with NSE Clearing Corporation for share transactions by offshore funds. NSE Clearing is one of the six CCPs, which includes CCIL, derecognised by ESMA.

Under the circumstances, Sebi (unlike RBI) is currently negotiating to find a middle ground and may be open to letting European regulators like ESMA and Bank of England (BoE) look into NSE Clearing Corp’s books as long it carries out a joint inspection with Sebi and takes no-objection certificate from the Indian regulator before initiating any inspection. BoE has disqualified CCIL and Indian Clearing Corp, the CCP for trades done on Bombay Stock Exchange.

“Probably, the government’s priority is to see that there is no adverse impact on the stock market. So, it may be comparatively more concerned about the derecognition of the stock clearing houses than the disqualification of CCIL. Thus Sebi may arrive at a solution quicker than RBI,” said a senior official with a large brokerage.

Among the foreign banks impacted by the ESMA directive are Deutsche, BNP Paribas, Credit Suisse, and Credit Agricole while institutions like Standard Chartered and Barclays would have to deal with the BoE rules.

0Like
0Dislike
50% LikesVS
50% Dislikes
Source: Economic Times
Tags: Bank of IndiaESMAEUrbi
Previous Post

SBI sees 14%-15% corporate credit growth in FY23

Next Post

Shriram Life empanelled as annuity service provider for PFRDA pension scheme

Prashant Dwivedi

Prashant Dwivedi

Related Posts

Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans
BFSI

Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

February 6, 2023
Our loans to Adani Group are secure: JK Bank
BFSI

Standard Chartered stops lending against Adani dollar bonds amid volatility

February 6, 2023
Axis Bank enters into revised pact with Max Financial Services for acquiring additional 7% stake in Max Life
BFSI

Axis Bank says exposure to Adani Group at 0.94 pc of total loans

February 6, 2023
Next Post
Shriram Life empanelled as annuity service provider for PFRDA pension scheme

Shriram Life empanelled as annuity service provider for PFRDA pension scheme

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

14th NBFC & FINTECH CONCLAVE & AWARDS 2023
Subscribe to our Newsletter
johnsmith@example.com

Recent News

Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans

February 6, 2023
Education ministry sets up panel to strengthen assessment, accreditation of higher educational institutions

Thousands of orphans will get opportunity to study at DU free of cost: VC

February 6, 2023
Our loans to Adani Group are secure: JK Bank

Standard Chartered stops lending against Adani dollar bonds amid volatility

February 6, 2023
Axis Bank enters into revised pact with Max Financial Services for acquiring additional 7% stake in Max Life

Axis Bank says exposure to Adani Group at 0.94 pc of total loans

February 6, 2023
B2B Infomedia

Be To Be Infomedia Pvt. Ltd. represents the inovative platfrom to the clients and widely recognised as one of the ponier networking platfrom with the team of young, creative, dynamic & dedicated professionals.

Quick Links

  • Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Refund Policy
  • Terms and Conditions

All News

  • BFSI
  • Edtech
  • Education
  • Enterprise
  • Financial Inclusion
  • Fintech
  • Pharma
  • Startup
  • Technology
Subscribe to our Newsletter
johnsmith@example.com
  • About Us
  • Contact Us

© 2022 b2binfomedia - Designed & Maintain by hscreativehub.com.

No Result
View All Result
  • Home
  • About Us
  • Upcoming Events
  • Fintech
  • BFSI
  • Education
  • Technology
  • Startup
  • Enterprise
  • Pharma
  • Contact Us
  • Login
  • Sign Up

© 2022 b2binfomedia - Designed & Maintain by hscreativehub.com.

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In