RBI encourages banks to use Alternative Reference Rates as a benchmark instead of LIBOR

With the objective of orderly, safe, and sound LIBOR transition and considering customer protection, reputational and litigation risks involved, the RBI has directed banks / financial institutions to cease, and also encourage their customers to cease, entering into new financial contracts that reference LIBOR as a benchmark and instead use any widely accepted Alternative Reference Rates, as soon as practicable.With the objective of orderly, safe, and sound LIBOR transition and considering customer protection, reputational and litigation risks involved, the RBI has directed banks / financial institutions to cease, and also encourage their customers to cease, entering into new financial contracts that reference LIBOR as a benchmark and instead use any widely accepted Alternative Reference Rates, as soon as practicable.taxmann.com Latest Statutory HappeningsRead More

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