The deadline mandating Indian banks sign agreements to settle FX forward trades via Clearing Corporation of India Ltd (CCIL) has been removed for now, two sources with direct knowledge of the development told Reuters on Thursday.
The Forex Dealers Association of India (FEDAI) informed banks and CCIL in a notification on Tuesday that a previous deadline of March 31 had been postponed, according to the two sources.
Foreign lenders had been reluctant to sign up because of a lack of clarity on rules regarding defaults by a central counterparty and on single borrower limits.
FEDAI officials were not immediately available for comments.
The Forex Dealers Association of India (FEDAI) informed banks and CCIL in a notification on Tuesday that a previous deadline of March 31 had been postponed, according to the two sources.
Foreign lenders had been reluctant to sign up because of a lack of clarity on rules regarding defaults by a central counterparty and on single borrower limits.
Also Read
FEDAI's notification also said the body will announce a new implementation date along with revised instructions "in due course of time," the sources said. They declined to be identified as the statement was not made public.
FEDAI officials were not immediately available for comments.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%