RBI nod for CCIL security lending plan

 According to official sources, the scheme has been designed to hasten the settlement of government securities.

 At present the settlement of gilts is done under the delivery versus payment system (DVP) which is a relatively lengthy process.

 Under DVP, the cash portion gets settled immediately but the settlement of securities takes time owing to non-availability of securities with the CCIL.

 Under the scheme, institutions and banks which have surplus gilts can lend the papers to CCIL which in turn can use them for the settlement purpose and return them once a transaction is over.

 Two major lenders in the inter-bank call money market