Description

ICCL updates the list of 34 banks eligible as acceptable collaterals under Section 3.2 of SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65, effective 26 Feb 2026. Applicable to all Members, Custodians, PCMs, and Banks.

Summary

Indian Clearing Corporation Ltd. (ICCL) has issued a revised list of 34 banks eligible as acceptable collaterals, in continuation of ICCL Circular 20251114-14 dated November 14, 2025 and with reference to SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated May 29, 2024. All Members, Custodians, PCMs, and Banks are required to take note of the updated eligible bank list.

Key Points

  • Updated list contains 34 banks eligible as collateral providers as of February 26, 2026
  • Eligibility is governed by Section 3.2 (Criteria for selection of Banks) of the SEBI Circular dated May 29, 2024
  • Continuation of previously issued ICCL Circular 20251114-14 (November 14, 2025)
  • Issued by Sushant Majhi, Chief Risk Officer, Risk Department, ICCL
  • Applies to all Members, Custodians, PCMs (Professional Clearing Members), and Banks

Regulatory Changes

The revised eligible bank list supersedes the previous list published under ICCL Circular 20251114-14. The governing SEBI framework remains SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated May 29, 2024. No changes to the underlying selection criteria are indicated — only the roster of qualifying banks has been refreshed.

Compliance Requirements

  • All Members, Custodians, PCMs, and Banks must review the revised list of 34 eligible banks
  • Collateral submitted to ICCL must be from banks on the current approved list
  • Entities should verify that existing bank guarantee or collateral arrangements involve only listed banks
  • Non-compliant collateral from unlisted banks must be rectified promptly

Eligible Banks (34 total):

  1. AU Small Finance Bank Ltd
  2. Axis Bank Ltd
  3. Bank of Baroda
  4. Bank of India
  5. Bank of Maharashtra
  6. Barclays Bank PLC
  7. Canara Bank
  8. Central Bank of India
  9. Citibank N.A.
  10. Credit Agricole CIB (India)
  11. DBS Bank
  12. Deutsch Bank AG
  13. HDFC Bank Ltd
  14. HSBC Bank Ltd
  15. ICICI Bank Ltd
  16. IDBI Bank
  17. IDFC First Bank Ltd
  18. Indian Bank
  19. Indian Overseas Bank
  20. IndusInd Bank Ltd
  21. JP Morgan Chase Bank, N.A.
  22. Karur Vysya Bank Ltd
  23. Kotak Mahindra Bank Ltd
  24. Mizuho Bank Ltd
  25. MUFG Bank Ltd
  26. Punjab and Sindh Bank
  27. Punjab National Bank
  28. Standard Charter Bank
  29. State Bank of India
  30. Sumitomo Mitsui Banking Corporation
  31. The Federal Bank Ltd
  32. The South Indian Bank
  33. UCO Bank
  34. Union Bank of India

Important Dates

  • Circular Date: February 26, 2026
  • Reference SEBI Circular: May 29, 2024 (SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65)
  • Previous ICCL Circular: November 14, 2025 (ICCL Circular 20251114-14)
  • Effective Date: Immediate (list is valid “as on today”, i.e., February 26, 2026)

Impact Assessment

This circular has moderate operational impact on clearing members and custodians. Any entity currently using a bank not on the revised list as a collateral provider must take corrective action. The 34-bank list includes major public sector banks, leading private sector banks, and prominent foreign banks operating in India, suggesting broad continuity. Members with collateral arrangements should cross-check their current bank counterparties against this list to avoid potential margin or settlement issues. Contact for queries: risk.monitoring@icclindia.com | +91-22-22728759/5733/8811/5059.

Impact Justification

Routine but operationally significant update to the approved bank list for collateral purposes under a SEBI framework; affects all clearing members and custodians who must ensure their bank collateral providers remain on the revised eligible list.