Rely on transaction data to settle financial contracts: Reserve Bank of India

MUMBAI: A Reserve Bank of India-appointed panel has suggested that Indian money and currency markets use data provided by actual transactions to arrive at benchmarks used to settle financial contracts rather than rely on the traditional method of polling a few select brokers.

The panel, which is seeking to avoid embarrassments such as the rigging of Libor and exchange rates in Europe, has suggested that the RBI get a bigger role in monitoring the financial benchmarks and suitable legislation be brought in to provide the banking regulator a bigger role.

Till such time, the foreign exchange and fixed income dealers associations may play the role, it said.