RBI Directs Banks to Ensure Complete Transition Away from LIBOR w.e.f 01.07.2023
- Blog|News|FEMA & Banking|
- < 1 minute
- By Taxmann
- |
- Last Updated on 16 May, 2023
Latest from Taxmann
Circular no. RBI/2023-24/30 CO.FMRD.DIRD.01/14.02.001/2023-24; Dated: 12.05.2023
RBI has directed banks and financial institutions (FIs) to ensure a complete transition away from the London Interbank Offered Rate (LIBOR) from July 01, 2023. A complete transition is a significant event in global financial markets, aimed at mitigating operational risks and ensuring an orderly transition.
Banks/FIs are advised to ensure that no new transaction undertaken by them or their customers relies on or is priced using the US$ LIBOR or the Mumbai Interbank Forward Outright Rate (MIFOR).
Banks in India have already been encouraged to undertake transactions using a widely accepted alternative reference rate (ARR) since December 31, 2021
The Banks/FIs are also advised to take all necessary steps to ensure the insertion of fallbacks in all remaining legacy financial contracts that refer to US$ LIBOR. The Reserve Bank will continue to monitor the efforts of banks/FIs to ensure a smooth transition from LIBOR.
Also, Financial Benchmarks India Pvt. Ltd. will cease to publish MIFOR after June 30, 2023. The Financial Conduct Authority of the UK announced the withdrawal of LIBOR settings in 2021 following wide-scale allegations of malpractice.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
