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SBI Becomes First Bank to Attain Trading cum Clearing Membership at IIBX

Context:

The State Bank of India (SBI) has achieved a significant milestone by becoming the inaugural bank to secure Trading cum Clearing (TCM) membership at the India International Bullion Exchange (IIBX). This accomplishment underscores SBI’s commitment to enhancing its presence and influence within the bullion trading sector, further solidifying its position as a key player in India’s financial landscape.

Relevance:

Facts for Prelims

Key Highlights:

  • The RBI’s decision allows SBI’s IFSC Banking Unit (IBU) to participate as trading and clearing members at the IIBX platform, designated as Special Category Clients (SCCs), facilitating gold imports through the bullion exchange.
  • This development is anticipated to boost trading volumes for gold and silver at the IIBX, enhancing transparency and efficiency in India’s Bullion Market.
  • IIBX, overseen by the International Financial Services Centers Authority (IFSCA), represents India’s inaugural bullion exchange, situated within the GIFT-City IFSC.
  • Bullion markets serve as platforms for trading precious metals such as gold and silver, where transactions occur directly between buyers and sellers, including through futures markets.
  • Silver and gold possess diverse industrial applications, influencing their market prices, with bullions often viewed as a hedge against inflation and a secure investment option.
  • TCMs, or Trading and Clearing Members, have the authority to trade on their own behalf and on behalf of clients, as well as clear and settle trades conducted by themselves and other trading members availing their clearing services.

-Source: Times Of India


June 2024
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