Foreign banks rush to find plan B as ESMA-BoE ban on CCIL looms

Foreign lenders, RBI in talks to find satisfactory alternative mechanisms

Several foreign banks are working against the clock to effective alternative mechanisms as the issue of certain European regulators’ decision to de-recognise the Clearing Corporation of India finds remains unresolved.

“The need of the hour is to solve the trading issue. It’s putting the system under stress. In another three weeks or so, the foreign banks will have to think about unwinding, packing up, and shifting out. There is not much time. There are many plan Bs, but it’s difficult to come up with an efficient one,” a source aware of the matter told Business Standard.

“A real viable plan