What is the process of Shortage Handling and what are the CCIL charges in case of a default?
USD Shortage: A member with a net USD payable position is said to have defaulted when it fails to credit part or the whole USD obligation to CCIL’s account maintained with the Settlement agent before the stipulated cut-off time on the value date. In such a case, CCIL will complete the US Dollar leg of the settlement by drawing the lines of credit which CCIL has with the settlement bank. On S+1 day, CCIL will debit the current account of the defaulting member with RBI with the INR funds received by that member on the S day from CCIL. The withheld funds will be released on receipt of dollar funds. INR Shortage: In the event of INR shortage, CCIL will use the Rupee lines of credit and complete the settlement process and withhold corresponding dollar payout due to the defaulting Member. The dollar funds will be released on receipt of INR Funds. Default charges: CCIL shall impose penalty and LOC charges on the defaulting member. LOC charges will be on the basis of actuals for both INR and U
