02:50 Oct 22, 2021
CCILCCIL > FAQ > Forex Settlement
 

1.

What is the Forex settlement system that CCIL follows?

2.

What are the pre-requisites for seeking Forex membership?

3.

What is the mode of settlement through CCIL?

4.

What are the advantages of Payment versus Payment (PVP) mode of Settlement through CCIL?

5.

What is the process of Novation?

6.

How is the connectivity between CCIL and the members established?

7.

How will the members know if the files have not been successfully sent to CCIL through FRS?

8.

Can members re-report the trades failed due to technical validation or incorrect format?

9.

What are the basic business validations that CCIL does after the data is received in the system?

10.

What are the types of trades that are currently settled through CCIL?

11.

What are the types of trades reported to CCIL?

12.

What is the cut-off time to report trades to CCIL?

13.

What is the time window for online exposure check in Forex Settlement Segment?

14.

Do banks have to report trades done on Fx-Clear, Fx-Swap or FX-Retail Dealing platform of CCIL?

15.

Are trades done on Fx-Clear, Fx-Swap or FX-Retail Dealing platform of CCIL subjected to Exposure Check?

16.

When and how can a deal be amended or cancelled?

17.

How is the Exposure verification done?

18.

What is the cut-off time for covering limit excess/pending exposure trades?

19.

What is Cash Settlement process?

20.

What are the various options to cover limit excess/pending exposure trades?

21.

What is pre-funding and explain the process of process of Pre-funding in Forex Settlement Segment?

22.

When is the Net-position Report generated for Members?

23.

What is an Inside/ Outside Swap?

24.

How will a member do the reconciliation of deals settling through CCIL?

25.

Process Flow for Forex Clearing and Settlement

26.

What is the cut-off time for receiving US Dollar obligation by CCIL? What happens if the funds are received post the cut-off time?

27.

What is the process of Shortage Handling?

28.

What are the CCIL charges/penalty levied in case of a default?

29.

What is Shortage Allocation Process?

30.

What are the various reports available for members?

31.

What are the CCIL settlement charges in USD/INR Segment?

32.

What is a direct debit mandate (MT 204/MT 202R)? How will it help the member Banks?

33.

What is loss mutualisation on US Dollar?





 

1.

What is the Forex settlement system that CCIL follows?

 

CCIL runs a multilateral netting system for forex inter-bank transactions that nets the members payments and receipts in a currency, though they are due to or from different counterparties and settles the net position on a payment versus payment (PVP) basis in both the legs of the transactions. CCIL becomes the central counterparty to every accepted trade through the process of novation.

 


2.

What are the pre-requisites for seeking Forex membership?


The following eligibility criteria shall apply for grant of Membership to the “FOREX” segment of Clearing Corporation: The applicant shall –

1. be an Authorized Foreign Exchange Dealer;

2. have a current account with the Reserve Bank of India for settlement of transactions in Indian Rupees;

3. have INFINET connectivity;

4. have a Nostro Accounts(s) with its Correspondent(s);

5. have adequate risk management systems and policies in place and qualified personnel in its employment;

6. should be a member of CCIL’s Securities Settlement Segment.


 

3.

What is the mode of settlement through CCIL? 

 

CCIL adopts the Payment versus Payment mode of Settlement. 

 


 

4.

What are the advantages of Payment versus Payment (PVP) mode of Settlement through CCIL? 

 

The key benefits on account of a PvP model to members are:

1. Elimination of principal/credit risk,

2. Counterparty limits need not be maintained by members on acceptance of trade for guaranteed settlement by CCIL,

3. Banks can trade with additional counterparties, which may also lead banks to consider counterparties that they have not traded with previously.

 


 

5.

What is the process of Novation?

 

"Novation" is the act of Clearing Corporation interposing as Central Counter Party upon acceptance of the trades by it by replacement of the existing obligations with the new obligations. The netting scheme adopted by CCIL is netting by novation where the bilateral relationship between the two participants/members is substituted with bilateral contracts between each participant/member and CCIL.  The net positions of all member banks, both in INR and USD, are computed by a multilateral netting of all accepted trades. Novation takes effect from the moment a trade is accepted by CCIL for settlement.

 

 

 

6.

How is the connectivity between CCIL and the members established? 

 

The connectivity between the Member bank’s back office and CCIL via INIFINET is established, which is the domestic payment system network and each bank is connected to it via a Gateway Server. The Member Banks have to install a utility called File Routing System (FRS) utility on this gateway server through which the banks can transmit data in IFN300 format to CCIL.  The IFN 300 files transmitted are text files with the file extension as .ccil. The FRS utility software developed by CCIL can be downloaded by the member banks from the CCIL report browser.

Further, CCIL provides for an option for either the CM to report trades on behalf of the constituent or constituent to report the trades directly through MFT server in excel template file, which will be converted to IFN300 file format at CCIL. The format for reporting the trades is same as the current IFN300 format. However, field F57A of the IFN 300 format shall be used for identifying the CM who will settle the trade on behalf of the constituent (Format Enclosed)

 

 

 

7.

How will the members know if the files have not been successfully sent to CCIL through FRS?

 

Trades that fail technical system validations are not taken into CCIL's system for validations. The trades that are rejected outright because of incorrect format or technical failures are placed in a separate sub-folder called UINR under the received folder in the FRS application. Member has to check for the reason for rejected deals on account of technical validation under the path C:/CCIL/Receive/UINR. 

 

 

 

8.

Can members re-report the trades failed due to technical validation or incorrect format?

 

Members can re-report the trades as ‘NEWT’ and can use the same reference number as these trades have not been taken into CCIL’s system.

 

 

 

9.

What are the basic business validations that CCIL does after the data is received in the system? 

 

CCIL will perform the following validation checks:

  • 1. Both the parties to the transaction are active members of forex settlement segment of CCIL.
  • 2. The message is not duplicated.
  • 3. Amount Conversion is correct.
  • 4. Original deal exists for amend/cancel deal
  • 5. Counterparty Ids  are valid
  • 6. Currency traded is valid
  • 7. Trade date is not greater than current day
  • 8. Settlement date is not a holiday
  • 9. Trade date is not Saturday or Sunday
  • 10. Settlement date is not less than trade date or reporting date
  • 11. Amendment received is not for an already accepted trade.
  • 12. Date Mismatch
  • 13. INR amount should be round figure.
  • 14. SWAP trade is rejected due to unique common reference number violated.
  • 15. Cash and Tom Constituent trades not allowed.
  • 16. Clearing Member not active
  • 17. Constituent deal sent beyond prescribed cut-off
  • 18. Constituent pending trade rejected at Spot Cut-off
  • 19. Counterparty Clearing Member not active
  • 20 .Deal between two Constituents is not allowed
  • 21. Member and Clearing Member pair is not active
  • 22. Counterparty and Counterparty Clearing Member Pair is not active

 

 

10.

What are the types of trades that are currently settled through CCIL?

 

CCIL settles all Forex inter-bank Cash, Tom, Spot and Forward USD/INR transactions.

 



11.

What are the types of trades reported to CCIL? 
 

All inter-bank forex trades concluded bilaterally through various dealing platforms are reported to CCIL.

 

 

 

12.

What is the cut-off time to report trades to CCIL?

 

The cut-off time for reporting trades to CCIL is 2:45 p.m. on S-1 day for Spot and Forward deals and S day 2:45 p.m. for Cash & Tom trades.

Cut off time for reporting Constituent deals is set at 4.00 p.m. on S-2 day. Accordingly, the netted forward position shall be transferred to Forex Settlement Segment at 4:00 p.m on S-2 day.

 



 

13.

What is the time window for online exposure check in Forex Settlement Segment?

 

The time window for online exposure check in the Forex Settlement Segment is from 10:00 a.m. to 4:30 p.m. IST. Trades matched post the online session closure is subjected for Exposure Check on the next business day.

 


 

 

14.

Do banks have to report trades done on Fx-Clear, Fx-Swap or FX-Retail Dealing platform of CCIL?

 

Banks need not report trades done on FX-Clear, Fx-Swap or FX-Retail Dealing System(C-SPOT) of Clearcorp Dealing System. These trades shall directly flow from the trading platform to the CCIL's with CCIL as the counterparty.

 


 

 

15.

Are trades done on Fx-Clear, Fx-Swap or FX-Retail Dealing platform of CCIL subjected to Exposure Check?

 

Trades done on FX-Clear FX-Swap and/or Fx-Retail Dealing System are subjected to Exposure Check on a post trade basis.

 


 

16.

When and how can a deal be amended or cancelled?

 

A deal which has already been accepted by CCIL for settlement in the Spot segment cannot be amended. However, a trade can be cancelled by the member before the Cut-off time (i.e. S-1 day for Spot and Forward and S day for Cash & Tom trades) even if the same has been accepted by CCIL. The cancellation for an accepted or matched trade has to be received from both the counterparties.

Further, any unmatched deal (NEWT, AMND and CANC) can be unilaterally cancelled by reporting CANC by the member.

 


 

 

17.

How is the Exposure verification done?

 

All matched trades including trades received from Forex Dealing systems and netted positions, if any, received from Forex Forward segment shall be subjected to checks for adequacy of margin and limit checks for both counterparties to the trade. Trades which pass through Exposure and margin check shall be accepted for settlement by CCIL. Exposure check for all trades is carried out on an online basis from 10:00 to 4:30  p.m. on all business days. Trades which result in a breach either due to inadequacy of Exposure Limits or due to inadequacy of margins shall remain in queue and be eligible for consideration for exposure check.

 


 

18.

What is the cut-off time for covering limit excess/pending exposure trades?

 

Banks that have availed higher limits are required to bring down their position within the Exposure Limit by 1:00 p.m. on S day else the excess position shall be Cash Settled.

Other trades in Pending exposure have to be covered by 2:45 p.m. on S day else the same shall be rejected at cut-off.

 


 

19.

What is Cash Settlement process?

 

A Member that has availed higher limits or has Forex Forward position in pending exposure status is required to ensure that the positions are within the Exposure Limit on the settlement date by 1:00 p.m.

In the event the Member fails to bring down its position within the Exposure Limit by 1:00 p.m.on Settlement date, the position in excess of the Exposure Limit shall be Cash Settled.

1. The cash settlement shall be effected by way of allocation of such positions first to the Members breaching Exposure Limits in the counter currency on S day at the notified time, to the extent such allocation is possible without any breach of exposure limit in the counter currency.

2. CCIL shall allocate the balance amount, if any, to the top ten Members having highest receivable position in the currency of breach. Allocations shall be in proportion to the net receivable position of such Members.

3. The deals arising out of Cash settlement shall be with CCIL as counterparty. Such Members to whom allocations have been made shall be referred as Allocatee Members.

4. Allocation advice would be sent to both, the Allocatee Members and to those Members whose sale positions are cash settled, by CCIL after the allocation has been effected.

5. a compensation of 1 paisa would be added to the rate at which the Cash Settlement is effected. An allocatee Member may buy U S Dollar/INR, to the extent of allocation, from the market for the same settlement date and if it has done so, it can upon intimation to CCIL, claim that the allocation of the sale position to it be effected using the rate at which it has purchased U S Dollars/INR as increased/decreased by an amount per USD. Such intimation must be received by the CCIL in the format specified before 12:30 p.m. on settlement date for the position considered for allocation.

6. However, if the rate at which the Allocatee Member has bought US dollars/INR as above is identified as an outlier by CCIL or the Allocatee Members do not notify any purchase of US dollars/INR, INR/USD Cash rate as polled by CCIL on S day shall be used as increased by an amount per USD

7. The Member whose sale positions are cash settled due to breach of Exposure Limit on S day shall be liable to make good any amount of loss/shortfall arising out of cash settlement.

 

 

 

 

20.

What are the various options to cover limit excess/pending exposure trades?

 

Banks have the following options to cover the limit excess or pending exposure trades:

1. Report off-setting buy trades in the currency of breach

2. Opt for S/S-1 day pre-funding in the currency of breach

3. Opt for Inside/Outside Swap.


 

 

21.

What is pre-funding and explain the process of Pre-funding in Forex Settlement Segment?

 

Prefunding is an option given to members to avoid trades being rejected on account of exposure violation. Amount in excess of Exposure limit can be prefunded by the member by transferring the USD or INR  to CCIL’s account, within the specified cut-off time, which will enable CCIL to enhance Exposure Limit temporarily in that currency for a settlement date.

 

Members desirous of availing temporary enhancement/Pre-funding option have to give a request to CCIL via Enotice.

USD Prefunding:

Banks have the following options in USD Pre-funding:

1.    Same Day Prefunding: Member shall advise the USD amount for which temporary enhancement is sought and ensure that the funds are credited in CCIL’s account with its Settlement Bank before the cut off time of 2:15 p.m. IST on the settlement day for which additional limit is required. Exposure limit for a bank shall be enhanced only after the credit is received by CCIL in its account with the Settlement Bank. Banks are required to put “S-1 Prefunding “in field 21 of the relevant MT202 payment instruction.

                                                                                        

2.    S-1 day prefunding: Member shall ensure that the USD funds are credited in CCIL’s account with its Settlement Bank one business day before the settlement date for which additional limit is required. Exposure limit for a bank shall be enhanced only after the credit is received by CCIL in its account with the Settlement Bank. Funds received up to 20:00 hrs IST may be invested subject to investment avenues being available and if invested, interest shall be passed on to the member, net of cost, charges and taxes. Banks are required to use their “Member id” in field 21 of the relevant MT202 payment instruction.

 

3.    The charges levied towards handling cost on Prefunding are as under:

Particulars

Handling Charges in USD

Interest earned upto USD 50

5

Interest earned more than 50 and upto 100

10

Interest earned more than 100 and upto 1000

15

Interest earned more than 1000

20

 

INR prefunding

Member desirous of availing temporary enhancement/Pre-funding in INR have to give a request to CCIL via Enotice. Banks have the following options in INR Pre-funding:

1. Same Day Prefunding: Member shall ensure that the INR funds are credited in CCIL’s RTGS account before the cut off time of 2:15 p.m. IST on the settlement day for which additional limit is required.

2. S-1 day prefunding: Member shall ensure that the INR funds are credited in CCIL’s RTGS account one business day before the settlement date for which additional limit is required. However, these INR Funds shall not qualify for any deposit interest.

Please be advised that the Exposure limit in INR for a bank will be enhanced only after the credit is received in its RTGS settlement account by Clearing Corporation.

 


 

22.

When is the Net-position Report generated for Members?

 

The Net-position Report is made available to banks at 3:00 p.m. IST. Banks are required to make payment based on this Net-position Report.

 


 

23.

What is an Inside/ Outside Swap?

 

Inside/Outside Swap (I/O Swap) allows a member to cover  position in breach of its exposure limit by undertaking a swap trade for the same settlement date with another member. The buy leg of the deal for the member is reported and settled within CCIL thereby reducing the bank’s net sale position. The sell leg will have to be settled by the bank with the respective counterparty outside the CCIL system.  This approach helps ensure settlement of all inter-bank deals within CCIL by bringing about a reduction in banks’ settlement exposure.  It also leaves the member’s FX positions unchanged with a neutral exchange rate.  The choice whether to enter into such a swap or not is up to the bank.

 


 

24.

How will a member do the reconciliation of deals settling through CCIL?

 

Banks can reconcile the status of their deals on T day itself, taking note of all Unmatched, Overexposed and Accepted deals, the details of which are available in the Deal Status Report in the IRIS online system.

1. Accepted:  Deals with status ‘Accepted’ are accepted for settlement by CCIL.

2. Pending Match: This status can change up to cut-off batch on S-1 for Spot and forwards and up to cut-off batch on S day for Cash and Tom deals. Spot and forward deals which continue to be unmatched on S-1 after the cut-off batch will be rejected. Cash and Tom deals which continue to be unmatched till the cut-off batch will be rejected on S day.

3. Pending Exposure deals: The pending exposure deals will be carried forward till S day and if an offsetting buy in the currency of breach is reported by the member, then the pending exposure trade would be accepted for settlement.

 


 

25.

Process Flow for Forex Clearing and Settlement

 

Clearing process:

Trades/Deals are received by CCIL from the Member Bank’s back office through File Routing System (FRS) in the form of IFN 300 (Annexure I). The connectivity between the Member banks back office and CCIL is via the INFINET.

 

Trades that pass the validation check and are matched, are subjected to online exposure check.

 

There are three batches being run during the day viz:

Cut-off Batch: This batch is processed at 2:45 p.m. This is the cut-off time for receiving trades/deals from member banks for spot and forward trades to settle the next day, and for cash and tom trades to settle the same day. Spot/Forward Trades which are pending exposure on S-1 day would be carried forward till S day. The banks have the option of pre-funding on S-1 day for the trades pending exposure. Banks can also undertake an In/Out Swap on a Cash & Tom basis, to enable the deals pending exposure to settle through CCIL. Spot & Forward deals which are lying unmatched for value next day (on S-1 day) and Cash & Tom deals for value same day (on S day) will be rejected at this batch. All trades which are in breach of exposure limit would be rejected in this batch for value S day.

 

Netting Batch: Members receive the Final Net Position Report in respect of Trades accepted for Clearing and Settlement by  3:00 p.m. on S day. Obligations contained in the Final Net-position Report shall constitute binding and conclusive confirmation of the respective Member’s obligations. The obligations of the respective Members so determined shall be final and irrevocable.

 

Forex Forward Netted Position Batch: Outstanding forward trades accepted for settlement for a settlement day (S day) in the Forex Forward segment is netted member-wise two business days before the settlement day (i.e. S-2 day). The netted positions arising out of such forward trades are subjected to exposure check on S-2 day in this Forex Forward Netted position batch by  4:00 p.m. on S-2 day.

 

Settlement Process:

The Member banks with a net debit (short) position in USD have to issue payment instructions (MT202) to their correspondent bank for credit to CCIL’s identified account. The cut-off time for receipt of USD to CCIL’s account with its settlement bank is 8:30 p.m. IST (10:00 a.m. EST) on the settlement date. Banks are required to put their Member ID in field 21 of the MT202 payment instructions.

For members who have opted for MT204/MT202R, CCIL will, on behalf of the member bank, send Direct Debit Message to Member’s Correspondent for the settlement obligation by 4:30 p.m. IST .

For Rupee settlement, the Power of Attorney to CCIL given at the time of admission enables CCIL to debit or credit the member’s current account maintained with RBI. Members have to ensure that their rupee account is funded with the amount that is due from them for each value date. Banks having INR receivable position shall receive INR, once the USD is received by CCIL in its account with its Settlement Bank within the cut-off time of 8:30 p.m. IST.

Window of Operations - Timings (all references to timings in these documents refer to Indian Standard Time unless otherwise specified)

PROCESSES

Timings

Forex Forward Netted Position

4:00 p.m.

Cut-off Batch

2:45 p.m.

Netting Batch

3:00 p.m.

Cut-off time to receive the USD Credits into CCIL’s account with its Settlement Bank.

8:30 p.m.

INR settlement cut-off time

8:30 p.m.

 

 


26.

What is the cut-off time for receiving US Dollar obligation by CCIL? What happens if the funds are received post the cut-off time?

 

The cut-off time for receiving U S Dollar funds is 7:30 p.m. IST. In the event, funds are received post the cut-off time, the counter-value INR pay-out would be released only on the next business day. Further, if the USD funds are received after 8.30 p.m. IST, CCIL will levy interest charges at 30 basis point p.a. on USD Obligation.

 


 

27.

What is the process of Shortage Handling?


USD Shortage:  A member with a net USD payable position is said to have defaulted when it fails to credit part or the whole USD obligation to CCIL’s account maintained with the Settlement agent before the stipulated cut-off time i.e.8:30 p.m. (IST) on the value date. In such a case, CCIL will with-hold the equivalent rupee funds receivable by member and complete the US Dollar leg of the settlement by drawing the lines of credit which CCIL has with the settlement bank. The withheld INR funds will be released on the next day on receipt of dollar funds.

 

INR Shortage:  A member with a net INR payable position is said to have defaulted in its obligation when it fails to fund its account with RBI. In such a case, CCIL will use the Rupee lines of credit and complete the settlement process and withhold corresponding dollar payout due to the defaulting Member. The dollar funds will be released on the next day on receipt of INR Funds.

 


 

28.

What are the CCIL charges/penalty levied in case of a default?


Default charges: CCIL shall impose penalty and LOC charges on the defaulting member.

 

LOC charges will be on the basis of actuals for both INR and USD defaults i.e. actual number of days LOC has been utilised.

 

Penalty on the default amount will be computed at 5% above the Bank rate for the number of business days of default.

 


 

29.

What is Shortage Allocation Process?


In case of Shortage, CCIL shall avail the Lines of Credit available and complete the settlement. However, in the event CCIL is unable to fully meet the shortage by availing the Lines of Credit, the residual amount, i.e., the amount by which the shortfall exceeds the available resources shall be apportioned among the Members who have a net receivable position in the currency of shortage.

 

The allocation process shall be as given below:

1. In the event any member fails to pay funds to CCIL towards its settlement obligation, the lines of credit (LOC) shall be availed by CCIL and the settlement shall be completed.

2. If the shortfall exceeds the available LOC, shortfall amount exceeding the LOC shall be apportioned to members having receivable from CCIL. Such shortfall shall be allocated to the top 10 members having receivable from CCIL.

3. The allocation would be in proportion to their receivable position from CCIL and shall be restricted to maximum 50% of their respective receivable amount.

4. In case CCIL is unable to apportion the shortage to the top 10 members, the balance shall be apportioned to the next 10 banks having dollar receivable position in proportion to their receivable position from CCIL and this process shall continue until the allocation is completed. In rare cases, allocation may exceed 50% only if there is unallocated shortfall even after allocation of shortfall to all members having receivable amount in the first phase. The final allocation amount shall be known at 7:30 p.m.

5. CCIL shall with-hold the counter-value funds of the member with shortage.

6. On the next business day, if the member(s) causing the shortfall replenishes the funds, the members who have been allocated short, would be paid the funds by CCIL.

7. In the event the member(s) causing shortfall, does not replenish the funds, CCIL would sell the counter value withheld previous day to raise funds in shortage and the members who have been allocated short, would be paid by CCIL.

 

The members who have been allocated the USD shortfall would be entitled to receive interest at the rate of Fed Fund rate prevailing on the day of shortage plus 200 basis points or receive the funds with good value. Such interest shall be paid/back valuation effected upon recovery of interest from the member(s) in shortfall.

 

Members who have been allocated INR shortfall would be entitled to receive interest at the  FBIL MIBOR prevailing on the day of shortage. Such interest shall be paid upon recovery of interest from the member(s) in shortfall/default.

 


 

30.

What are the various reports available for members?


1. Deal Status Report available in IRIS: under Download option: This is an incremental report and is available to the members in csv format.  It contains the status of all deals reported for the day and any deal whose status has changed during that day. This report can be downloaded as many times as required on the day of download after the closure of session. This report shall be available only for current day. This report contains all the status that is currently available in the Deal status report.

2. Exposure Limit Utilization Report:  This report gives an overview of the Exposure Limit of a Member for a particular settlement day in INR & USD, the Member’s exposure for that day and the available limit for sale. On any given day this report will be generated for three value dates i.e. for S-2, S-1 and for S day. Members may note that the reports get updated after cut-off batch and End of the day (session closure) for those deals accepted for settlement for the respective value date. This report will help members to know their USD/INR net position for a value date on the basis of all accepted deals, along with the available and utilized exposure limit.

3. Final Net position: This report gives the final net position of a Member for a particular settlement day. The report provides details of all the deals (Cash, Tom, Spot & forward deals) which are accepted for settlement through CCIL and also provides the Net figure the Member is required to pay/receive both in Rupee and Dollar terms. This report will be generated on S day at around 3:00 p.m.

4. Alleged Deals Report for Forward deals:  This report is generated every day after the End of Day (EOD) process at CCIL. It reflects all the forward deals submitted by the counterparty of the members and not reported by the member.

5. Post Settlement Status Report: This report gives details of the total obligation amount, the settled amount and the amount of shortfall in INR and USD and also the status whether settled or short. This report is generated on the Settlement day giving the status of the INR & USD obligation as and when the obligations is received or paid by the member.

6. INR Shortage Report: This report gives details of actual INR shortage for a value date. It is generated on the Settlement date, i.e. after receipt of confirmation from Reserve Bank of India.

7. USD Shortage Report:  This report indicates the final shortfall in USD for a value date. It is generated on S+1 day.

8. INR Intraday Replenishment Report: A member having rupee obligation to CCIL on the Forex settlement leg may not be having sufficient credit balance in its account with RBI.  RBI completes the Rupee settlement of Forex Segment by utilizing CCIL’s Rupee Lines of Credit. As and when the member replenishes the shortfall on the same day this report is generated advising member of the replenishment.

9. USD Replenishment Report: This report is generated to advice the member when overnight shortfall in USD is replenished by the member.

10. Forward Deal Status report:  This report is generated every day after the session. It reflects all the forward deals reported which are matched /unmatched /accepted /pending exposure but has not been taken up for settlement by CCIL. The deals are reflected in this report till S-3 day.

11. Allocation Report: In the event of CCIL is resorting to shortfall allocation, a report would be generated after the settlement closure i.e. 8:30  pm IST. The report would be generated for all members who have shortfall in USD or INR because of which such allocation was necessitated, and to the allocatee members who have been paid less on account of such shortfall.

 


 

31.

What are the CCIL settlement charges in USD/INR Segment?


Members are required to pay settlement charges for every deal accepted for  settlement.

The following is the schedule of slab-wise fees and charges:

 

Sr.no.

Slab (USD)

Revised  Charges

 

Remarks

1

Upto 50,000

NIL

New Slab

2

Above 50,000 to Less than 100,000

10

New Slab

3

100,000 to less than 250,000

20

New Slab

4

250,000 to less than 500,000

45

New Slab

5

500,000 to less than 1 million

87

Revision in slab and charges

6

1 million to less than 3 million

107

Revision in charges

7

3 million to less than 5 million

121

Revision in charges

8

5 million to less than 10 million

145

Revision in charges

9

10 million to less than 20 million

170

Revision in charges

10

20 million and above

194

Revision in charges

GST shall be applicable for all the above charges.

 



If the member delays the payment i.e. If the payment is made after 10th of a calendar month then member will have to pay 5 basis point per day on the amount of charges.  

 



32.

What is a direct debit mandate (MT 204/MT 202R)? How will it help the member Banks?


Direct debit mandate (MT 204/MT 202R) is a message sent by a clearing house to a Swift member, to instruct the receiver of the message to debit the account(s) of the third party specified in the message and to pay or credit the corresponding amount in favor of the sender of the message.

 

For e.g. CCIL sends a MT 204/MT 202R to XYZ bank which is the correspondent of ABC bank asking XYZ to debit the account of ABC and give the credit to CCIL’s account with its correspondent for a particular value date. The main benefit of this message to the member banks is that they need not send a separate payment instructions (MT202) to their correspondent. CCIL will send the payment instructions on behalf of the member bank. The member banks will have to ensure that the account is funded.

 

 

 

33.

What is loss mutualisation on US Dollar?


CCIL has initiated a number of measures to limit the accumulation of US Dollar balances in its account with Settlement Bank including settlement using multiple Settlement Banks. However, there is still a possibility, though remote, of a Settlement Bank failing or becoming ineligible to effect settlement for reasons like financial deficiency, legal incapacity, regulatory actions etc immediately after transfer of balances to CCIL‟s Settlement Account. In terms of Chapter VI (H) of the Forex Settlement Regulations, in the event of failure of a Settlement Bank, the loss, if any, shall be allocated to those members who have opted to settle through that Settlement Bank. The losses shall be allocated to the Member Banks vide CCIL notification (CCIL/FX/USD-INR/18/95 DATED 28th SEP 2018)

 

 

 

 

                                                                                                                                      (ANNEXURE- I)


IFN 300:  Foreign Exchange Confirmation: Format Specifications:-

Status

Field No.

Field Name

Content and Options

SEQUENCE A - Conditions of the Contract

M

20

Transaction Reference Number

16x

M

21

Related Reference

16x

M

22

Code / Common reference/ Swap identifier

(*)

M

30

Date Contract Agreed / Amended

8n

M

36

Exchange Rate

12 number

O

72

Sender to Receiver information

6*35x

 

SEQUENCE B - Amount Bought

M

32R

Value      Currency      Amount

Date        Code             Bought 

8n3a15

number

O

56 A

Intermediary

A or D

M

57 A

Account with Institution

A or D

 

SEQUENCE C - Amount Sold

M

33P

Value      Currency      Amount

Date        Code             Sold

8n3a15

number

O

53 A

Sender’s correspondent

A, B or D

O

56 A

Intermediary

A or D

M

57 A

Account with Institution

A or D

Mandatory

26H

Spot rate in case of outright forward trade. Will remain blank in case of other than outright forward trade.

12 number

Mandatory

77D

Time

6 Number

 

 

 

 

SEQUENCE D – LEI and other details

O

87L

    Counterparty’s LEI

 Alphanumeric Length 20, fixed

O

22M

    UTI Namespace/Issuer Code

 Alphanumeric Max Length 50 (it can be less than equal to 50)

O

22N

    UTI (Unique Transaction Identifier)

 Alphanumeric Max Length 52 (it can be less than equal to 52)

O

22U

    UPI (Unique Product Identifier)

  Alphanumeric Max Length 50 (it can be less than equal to 50)

O

CDE1

    Critical Data Element 1

 Alphanumeric Max Length 50 (it can be less than equal to 50)

O

CDE2

    Critical Data Element 2

 Alphanumeric Max Length 50 (it can be less than equal to 50)

O

CDE3

    Critical Data Element 3

 Alphanumeric Max Length 50 (it can be less than equal to 50)

 

         The trade confirmation shall carry


  1. The Member’s CCIL Membership ID in first line of Field 72.
  2. And the counterparty’s Membership ID.  In case of Constituent Trade, the Constituent ID shall reflect in field 72 as a Member or counterparty as the case may be
  3. The code ‘NEWT’ in field 21 of IFN 300 for fresh Trades.
  4. The code ‘AMND’ in field 21 of IFN 300 for amendments to a transaction. Field 20 in such cases shall carry the same transaction reference number as the original.
  5. The code ‘CANC’ in field 21 of IFN 300 for cancellation of a transaction.  Field 20 in such cases shall carry the same transaction reference number as the original.
  6. In case of Constituent Trade, the Clearing Member ID of the Constituent reporting the trade shall reflect in the first field 57A and the CM of the counterparty would be mentioned in the Second F57A.
  7. Both USD and INR amounts in F32R and F33P can be accepted up to 2 decimal places.




 

 

 

 
 
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