The Reserve Bank of India (RBI) has instructed financial institutions and banks to adopt an Alternative Reference Rate, primarily the Secured Overnight Financing Rate (SOFR), and end their reliance on the scandal-shrouded London Interbank Offered Rate (LIBOR) and Mumbai Interbank Forward Outright Rate (MIFOR) by July 1.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
The central bank has said that most new transactions now use SOFR and the Modified Mumbai Interbank Forward Outright Rate (MMIFOR) as benchmarks.
Even though a few synthetic settings will still continue to be published after June 30, 2023, it’s been made clear by the UK’s Financial Conduct Authority, which oversees LIBOR, that these settings are not intended for use in any new financial contracts. Furthermore, Financial Benchmarks India Pvt Ltd will cease to publish the MIFOR, an interest rate benchmark for domestic purposes that relies on Dollar LIBOR, after the aforementioned June 30 deadline.
Also Read: RBI Launches 100 Days Campaign to Settle Unclaimed Deposits
India's cities are often known not just by their original names but also by unique…
On May 5th, the world unites to celebrate the Portuguese language, a linguistic treasure that…
In a groundbreaking endeavor, China has launched the Chang'e-6 probe on an ambitious mission to…
Frank Shrontz, who led Boeing as its Chief Executive Officer for a decade from 1986…
Lando Norris of McLaren clinched his first-ever Grand Prix victory in a pulsating showdown at…
India, renowned for its rich cultural heritage and diverse landscapes, also boasts a thriving tea…