The general case for promoting central clearing in derivatives markets is based on the aim of reducing systemic risk by managing interconnectedness. In markets without central clearing, counterparty exposures build up bilaterally and, in certain kinds of products, they can accumulate to very large notional amounts over time.
The Reserve Bank is currently working with other related Government ministries on this. It is highly expected that the application of a proper consumer protection mechanism will enhance the confidence and trust and encourage low income earners and rural dwellers to access readily available financial services.