Description

ICCL issues revised list of 34 banks eligible as acceptable collaterals under Clearing Corporation norms, in continuation of SEBI circular dated May 29, 2024 and ICCL Circular dated November 14, 2025.

Summary

Indian Clearing Corporation Ltd (ICCL) has issued an updated list of banks eligible as acceptable collaterals for Clearing Corporations as of February 26, 2026. This circular is issued in reference to SEBI circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated May 29, 2024, and is a continuation of ICCL Circular 20251114-14 dated November 14, 2025. The revised list contains 34 eligible banks selected under Section 3.2 (Criteria for Selection of Banks) of the SEBI Circular.

Key Points

  • ICCL has published a revised list of 34 banks eligible as acceptable collaterals effective as of the circular date.
  • The list is governed by Section 3.2 (Criteria for Selection of Banks) of SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65.
  • This is a continuation/update to ICCL Circular 20251114-14 dated November 14, 2025.
  • The circular is addressed to all Members, Custodians, PCMs (Professional Clearing Members), and Banks.
  • The eligible bank list includes a mix of public sector banks, private sector banks, small finance banks, and foreign banks operating in India.

Regulatory Changes

The revised eligible bank list supersedes the previous list issued under ICCL Circular 20251114-14 (November 14, 2025). The underlying framework remains governed by SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated May 29, 2024. No new criteria have been introduced; this is a periodic update to the approved bank list.

Compliance Requirements

  • All Members, Custodians, PCMs, and Banks must take note of the revised eligible bank list.
  • Collateral submitted to ICCL must be from banks on this approved list to qualify as acceptable collateral.
  • Members should review their existing collateral arrangements and ensure any bank guarantees or deposits are from the listed eligible banks.

Important Dates

  • Circular Date: February 26, 2026
  • Effective Date: February 26, 2026 (list is current as of this date)
  • Reference SEBI Circular Date: May 29, 2024
  • Previous ICCL Circular Reference: November 14, 2025 (ICCL Circular 20251114-14)

Eligible Banks (34 Banks)

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

Impact Assessment

This circular has a moderate operational impact on clearing members, custodians, and PCMs. Entities that currently use banks not on this revised list for collateral purposes will need to transition to approved banks. The inclusion of AU Small Finance Bank and continuation of major public/private sector and foreign banks provides sufficient optionality for members. No market-wide trading or settlement disruptions are expected; the impact is primarily administrative for compliance and risk management teams.

Impact Justification

Operational update relevant to clearing members, custodians, PCMs, and banks; updates eligible bank list for collateral purposes but does not introduce new regulatory requirements.