Daily Current Affairs : 15-May-2024

The State Bank of India (SBI) has accomplished a substantial milestone by becoming the first financial institution to be a trading-cum-clearing member of the India International Bullion Exchange (IIBX). This achievement marks a new chapter in India’s financial sector, particularly in the field of bullion trading. SBI’s participation in the IIBX will allow its branch at GIFT City in Gujarat to conduct and settle trades on behalf of its clients, providing a new platform for investors and traders involved in the bullion market.

What Does This Mean for SBI?

As the first bank to join IIBX, SBI has secured a strategic role in India’s growing bullion trading market. The IIBX platform allows businesses and individuals to trade gold and other precious metals in a transparent, efficient, and regulated environment. With SBI acting as both a trading and clearing member, it can facilitate the buying, selling, and settlement of bullion transactions for its clients.

  • SBI’s GIFT City Branch: The bank’s branch at GIFT City, Gujarat, will be directly involved in these trades.
  • Access to New Market: Clients can now access global bullion markets through IIBX.

About the India International Bullion Exchange (IIBX)

The India International Bullion Exchange (IIBX) is a new platform designed to streamline and enhance the trading of precious metals, especially gold. Located at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, the IIBX is set to become a hub for international financial services, offering a range of services related to bullion trading. The exchange provides an opportunity for both Indian and global clients to trade bullion in a regulated environment.

Key Features of IIBX:
  • Location: GIFT City, Gandhinagar, Gujarat
  • Purpose: Facilitates global bullion trading
  • Regulation: Adheres to RBI and other regulatory guidelines

Significance of GIFT City

GIFT City is a planned business district with the vision of becoming a global financial and IT services hub. It plays a key role in India’s push to enhance its global financial connectivity and support international trade, particularly in sectors like bullion and commodities.

  • Global Financial Hub: GIFT City is designed to attract international businesses.
  • Strategic Location: Positioned to strengthen India’s role in global markets.

Important Points:

SBI’s Achievement: State Bank of India becomes the first bank to be a trading-cum-clearing member of the India International Bullion Exchange (IIBX).SBI’s Role: SBI’s GIFT City branch will conduct and settle bullion trades on the IIBX platform on behalf of its clients.IIBX Overview: The India International Bullion Exchange (IIBX) is located at GIFT City, Gujarat, and focuses on bullion trading, especially gold.Key Features of IIBX:

  • Located in GIFT City, Gandhinagar, Gujarat.
  • Facilitates global bullion trading.
  • Operates under RBI and other regulatory guidelines.

Significance of GIFT City: GIFT City aims to become a global hub for financial and IT services, enhancing India’s global financial connectivity.Global Financial Hub: GIFT City is designed to attract international businesses and boost India’s position in global markets.

Why In News

The State Bank of India (SBI) has become the first bank to be a trading-cum-clearing member of the India International Bullion Exchange (IIBX) at GIFT City in Gujarat. This milestone not only strengthens SBI’s position in the global bullion market but also underscores India’s growing influence in the international financial ecosystem.

MCQs about SBI Paves the Way for Bullion Trading at IIBX in GIFT City

  1. Which bank has become the first trading-cum-clearing member of the India International Bullion Exchange (IIBX)?
    A. HDFC Bank
    B. ICICI Bank
    C. State Bank of India (SBI)
    D. Axis Bank
    Correct Answer: C. State Bank of India (SBI)
    Explanation: The State Bank of India (SBI) is the first bank to become a trading-cum-clearing member of the India International Bullion Exchange (IIBX), marking a significant step in India’s bullion market.
  2. Where is the India International Bullion Exchange (IIBX) located?
    A. Mumbai, Maharashtra
    B. New Delhi, Delhi
    C. Gandhinagar, Gujarat
    D. Bangalore, Karnataka
    Correct Answer: C. Gandhinagar, Gujarat
    Explanation: The India International Bullion Exchange (IIBX) is located at GIFT City in Gandhinagar, Gujarat. GIFT City is a planned business district designed to be a global financial and IT services hub.
  3. What is the main purpose of the India International Bullion Exchange (IIBX)?
    A. To facilitate the trading of foreign currencies
    B. To streamline and enhance the trading of precious metals, especially gold
    C. To support agricultural trading
    D. To manage stock market indices
    Correct Answer: B. To streamline and enhance the trading of precious metals, especially gold
    Explanation: The IIBX is designed to improve and regulate the trading of bullion, primarily gold, by offering a transparent and efficient platform for both Indian and international clients.
  4. What role will the State Bank of India (SBI) play in the India International Bullion Exchange (IIBX)?
    A. SBI will only act as a regulator.
    B. SBI will only facilitate foreign trade.
    C. SBI will be a trading and clearing member, conducting and settling trades on behalf of clients.
    D. SBI will provide insurance services to clients trading on IIBX.
    Correct Answer: C. SBI will be a trading and clearing member, conducting and settling trades on behalf of clients.
    Explanation: As a trading-cum-clearing member, SBI will facilitate buying, selling, and settlement of bullion trades for its clients on the IIBX platform, further enhancing its role in the global bullion market.

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