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- For the T+1 settlement, RBI revised banks’ capital market exposure norms.
- RBI has issued revised guidelines to banks regarding their exposure to the capital markets.
- The guidelines have been revised for custodian banks to issue Irrevocable Payment Commitments (IPCs) in light of the T+1 settlement regime for stocks.
- This step has been taken in response to changes in the settlement cycle from T+2 to T+1.
- Custodian banks issue IPCs must have a clause in their agreements with clients, granting the banks an inalienable right over the securities.
- The maximum intraday risk for custodian banks issuing IPCs is capped at 30 per cent of the settlement amount.
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