Circular issued by the Reserve Bank of India (RBI) on June 23, 2023 addresses the status of the Mumbai Interbank Forward Outright Rate (MIFOR) as a significant benchmark and provides important updates regarding its publication.
The circular refers to previous RBI circulars and highlights MIFOR as a significant benchmark administered by Financial Benchmarks India Pvt. Ltd. (FBIL). It further informs about the cessation of MIFOR publication after June 30, 2023, due to the non-representativeness of the US Dollar London Interbank Offered Rate (USD LIBOR) settings. The circular also mentions the approval granted to FBIL to cease the publication of MIFOR and provides an updated list of significant benchmarks administered by FBIL.
Conclusion: Effective from July 01, 2023, the updated list of significant benchmarks administered by FBIL will come into effect, with MIFOR no longer being considered a significant benchmark. Financial Benchmark Administrators are advised to take note of these changes as communicated by the Reserve Bank of India (RBI) through this circular.
RESERVE BANK OF INDIA
RBI/2023-24/46
FMRD.FMSD.03/03.07.25/2023-24 Dated: June 23, 2023
To
All the Financial Benchmark Administrators
Madam/Sir
Status of MIFOR as a Significant Benchmark
Please refer to the RBI circular dated January 01, 2020 and December 01, 2022, notifying, inter-alia, the financial benchmarks administered by Financial Benchmarks India Pvt. Ltd. (FBIL) viz., Mumbai Interbank Forward Outright Rate (MIFOR) and Modified Mumbai Interbank Forward Outright Rate (MMIFOR) as ‘significant benchmark’.
2. In light of the cessation of the publication/non-representativeness of US Dollar London Interbank Offered Rate (USD LIBOR) settings after June 30, 2023, FBIL has been accorded approval to cease the publication of the MIFOR after June 30, 2023, in terms of provisions of the Financial Benchmark Administrators (Reserve Bank) Directions, 2019. Accordingly, the MIFOR administered by FBIL shall cease to be a ‘significant benchmark’ after June 30, 2023.
3. The updated list of ‘significant benchmarks’ administered by FBIL is given below:
(i) Overnight Mumbai Interbank Outright Rate (MIBOR)
(ii) USD/INR Reference Rate
(iii) Treasury Bill Rates
(iv) Valuation of Government Securities
(v) Valuation of State Development Loans (SDL)
(vi) Modified Mumbai Interbank Forward Outright Rate (MMIFOR)
4. The updated list of ‘significant benchmarks’ shall come into effect from July 01, 2023.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
