Description

ICCL issues revised list of 34 banks eligible as acceptable collaterals under SEBI circular on norms for collaterals and exposure of Clearing Corporations, effective 26 Feb 2026.

Summary

Indian Clearing Corporation Ltd. (ICCL) has issued an updated list of banks eligible as acceptable collaterals under Section 3.2 (Criteria for selection of Banks) of SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated 29 May 2024. This notice (No. 20260226-8) is a continuation of ICCL Circular 20251114-14 dated 14 November 2025 and supersedes the previously published bank eligibility list.

Key Points

  • ICCL has revised the list of banks eligible for acceptable collaterals as of 26 February 2026.
  • The update is issued under authority of SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 (29 May 2024).
  • 34 banks are currently approved, including public sector, private sector, foreign, and small finance banks.
  • All Members, Custodians, Primary Clearing Members (PCMs), and Banks are required to take note.
  • Contact for queries: risk.monitoring@icclindia.com | +91-22-22728759/5733/8811/5059.

Regulatory Changes

This circular updates the eligible bank list in continuation of ICCL Circular 20251114-14 (14 Nov 2025), reflecting changes in bank eligibility criteria as per SEBI’s framework for acceptable collaterals and exposure limits of Clearing Corporations. The revised list replaces any previously communicated eligible bank lists.

Compliance Requirements

  • Members, Custodians, PCMs, and Banks must update their internal records to reflect the current list of 34 eligible banks.
  • Collateral submitted via banks must only be from institutions on this approved list.
  • Non-compliant collateral arrangements must be rectified promptly.
  • Approved banks as of 26 Feb 2026:
    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 Chartered 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

  • Notice Date: 26 February 2026
  • Effective Date: Immediately (as of 26 February 2026)
  • Reference SEBI Circular Date: 29 May 2024
  • Previous ICCL Circular: 20251114-14 dated 14 November 2025

Impact Assessment

This update has moderate operational impact on clearing members, custodians, and banks that provide collateral to ICCL. Entities using banks not present on the revised list must make alternative arrangements. The inclusion of foreign banks (Barclays, Citibank, DBS, Deutsch Bank, HSBC, JP Morgan, Mizuho, MUFG, Standard Chartered, Sumitomo Mitsui) and AU Small Finance Bank broadens collateral options. Risk and settlement teams should cross-check current collateral arrangements against the updated list immediately.

Impact Justification

Operational update affecting members, custodians, PCMs and banks regarding eligible bank collaterals. Compliance-critical for risk and settlement departments but no immediate market-wide trading impact.