Liquidity concerns over moves to reform Indian benchmark rates

Reserve Bank of India in Mumbai
RBI offices in Mumbai

The proposed move to an observed traded rate for certain financial benchmarks by the Reserve Bank of India (RBI) faces potential problems due to questions over liquidity and significant traded volumes, say market participants. While India was not one of the main markets affected by the Libor-rigging scandal, the recent bout of fines for leading banks with respect to this issue has brought benchmarking back into the global spotlight. The RBI released a report on February 7 calling for amendmen