FSDC deliberated on challenges in transition from Libor-based contracts

In a meeting, chaired by FM Sitharaman, it noted that a multi-pronged strategy involving relevant stakeholder institutions and departments is required in this regard

The Financial Stability and Development Council (FSDC) on Tuesday took up the issue of challenges involved in smooth transition from London Interbank Offer Rate (Libor)-based contracts. 

The meeting, chaired by finance minister Nirmala Sitharaman, noted that a multi-pronged strategy involving relevant stakeholder institutions and departments is required in this regard. 

Libor, the global benchmark for borrowings, is expected to cease by the end of next year. The RBI has been planning to replace it with the Mumbai Interbank Forward Outright Rate (Mifor).

India's exposure to LIBOR-linked borrowings, bonds, deposits and derivative contracts is pegged at $331 billion.

Indian Banks Association