Mr. Rajeshwara Rao and Mr. Jena who are on the stage and also luminaries of the financial world who are off the dais. Good evening to everyone. First of all, thank you Mr. Jena for giving me this opportunity. And congratulations to the CCIL team for completing 25 years, 25 glorious years and for conducting this program where you brought some of the people to share their ideas, insights in terms of the evolving financial infrastructure in the country. So, I consider it a privilege and thank CCIL for inviting me to deliver this keynote as we celebrate a landmark occasion. 25 years of an institution that has quietly but decisively shaped the strength of Indian financial system.
A quarter century is a long time in financial markets. In these 25 years India has transitioned from paper-based settlements and episodic volatility to a resilient digital and increasingly sophisticated financial ecosystem. Through every phase of this transformation, CCIL has been part of this country's financial nervous system, largely invisible in calm periods but absolutely indispensable in moments that mattered most. Some of the things I'm going to share, of course, are broadly known to you and many of the speakers ahead of me must have spoken. But still it is good to repeat the good things CCIL has been doing.
For SBI, the milestone carries a special meaning as one of the founding promoters. We have had the privilege of witnessing CCIL's journey from a bold idea to a globally respected central counterparty. What began in 2001 as an effort to improve settlement efficiency and reduce risk has today evolved into a cornerstone of trust, resilience, and systemic stability. The origins of CCIL remind us of an important lesson. It was born in response to securities market vulnerabilities when it became clear that strong market infrastructure is not optional but foundational. Markets cannot scale without trust and trust cannot exist without robust systems. CCIL was created to provide that backbone and it has done so with a remarkable consistency.
At its core, CCIL addressed three fundamental needs: ensuring protection against counterparty default, guaranteeing settlement finality, and bringing order to fragmented market practices. In doing so it fundamentally transformed how India's financial markets function. By stepping in as a central counterparty, CCIL replaced bilateral risk with centralized assurance, enabling participants to transact with confidence and freeing up liquidity through efficient netting. Today, whether it is the seamless settlement of government securities, the smooth functioning of money markets, or the hedging of currency risk, CCIL is omnipresent in the background, quietly ensuring system efficacy.
Its contributions over the years have been both deep and wide. From guaranteed settlement in foreign exchange markets to the evolution of triparty repos, from acting as a trade depository to enabling advanced collateral management platforms, CCIL has consistently anticipated market needs and responded with innovation. Its ability to combine scale with safety is reflected in the enormous volumes it handles today daily while maintaining an unbroken record of settlement integrity even during periods of global financial stress. To truly appreciate the scale of this transformation, let me briefly touch upon some numbers which are well known to you. Back in 2003, the daily volume for government securities was a little over 3,600 crores. By 2026 this has grown to over 71,000 crore, a remarkable increase of nearly 1,900%. The repo market tells an even more compelling story with daily volumes rising from around 1,600 crore to an extraordinary 5.6 lakh crore. These statistics reflect the growing depth, confidence, and sophistication of India's financial markets enabled by CCIL's robust infrastructure. Equally significant is its role in strengthening monetary policy transmission and market development. By enabling efficient collateralized markets, improving price discovery, and expanding market participation, CCIL has reduced friction across the system and contributed to a more stable and responsive financial architecture.
At SBI, our relationship with CCIL goes beyond that of a shareholder. We have been partners in this journey as participants, as liquidity providers, and as collaborators in building market infrastructure. We take pride in being co-architects of this evolution and remain committed to supporting CCIL in its next phase of growth. As we look ahead, the context in which CCIL operates is changing rapidly. The next 25 years will not just be about scale but about intelligent scale. Financial markets are now evolving at a faster pace, are more interconnected and complex. New asset classes will emerge, cross-border flows will intensify, and risk will evolve in ways that are less visible but potentially more systemic. In this dynamic environment, CCIL's role will become even more strategic. Artificial intelligence will be a defining force in this transformation, having the potential to significantly enhance risk management, improve operational efficiency, and enable real-time market surveillance. By analyzing vast datasets of historical transactions, counterparty behavior, and market conditions, AI can enable dynamic margin management, real-time risk assessment, and more accurate prediction of counterparty exposures. AI and machine learning can also automate repetitive processes such as clearing, settlement, and reconciliation, reducing operational overheads while improving speed and accuracy. In many ways, this represents a shift from being a post-trade processor to becoming a preemptive risk sentinel, one that not only manages risk but anticipates it. We can also envision deeper integration with global market infrastructures as Indian markets gain greater prominence in the international financial landscape. At the same time, new frontiers such as digital assets, tokenized securities, and enhanced cross-border settlement mechanisms will require both innovation and prudence. Cyber resilience, technological robustness, and regulatory alignment will remain critical pillars as we navigate this evolving landscape. CCIL is uniquely positioned to lead the next phase. Its track record of innovation, strong risk management framework, and close alignment with regulatory vision provide a solid foundation to build upon.
I would also like to mention, apart from my written speech, there's a lot of work which is being done by Mr. Jena and his team to build the leadership capabilities within CCIL. This is a very good development and I was very glad when he came and approached SBI to provide a training capsule for the leadership program at our State Bank Institute of Leadership. We are very proud to be associated with this program, Mr. Jena, and I have talked to some of the people who have participated in this program. They are quite happy about the content and the effort of the management to develop the next level of leadership, and please continue that work.
So, to me, CCIL at 25 represents a simple but powerful truth: while markets may be driven by sentiment in the short term, they are sustained by systems in the long term. Confidence is not created on trading screens. It is created in institutions like CCIL that ensure every transaction is honored, every obligation is met, and every risk is managed. As India moves forward on its journey towards becoming Viksit Bharat, the importance of such institutions will only grow. CCIL will continue to be one of the quiet powerhouses enabling this transformation by supporting deeper markets, stronger transmission, and greater global integration. I extend my heartfelt congratulations to the entire CCIL team, past and present, for building an institution of such enduring value. I wish CCIL continued success as it embarks on its next chapter, one that I'm confident will be as bold in vision as it is disciplined in execution. Thank you and Jai Hind.
