The Reserve Bank of India has announced plans to shift

Solution

To strengthen India’s interest rate benchmark framework, the RBI constituted the Committee on the MIBOR Benchmark, chaired by Shri Ramanathan Subramanian. The committee recommended replacing the Mumbai Interbank Outright Rate (MIBOR) with a more robust benchmark based on secured market transactions. Accordingly, RBI proposed the Secured Overnight Rupee Rate (SORR), which is derived from secured money market instruments like basket repos and TREPs. This benchmark is expected to: • Improve transparency and reliability, • Reduce dependence on unsecured market rates, and • Align India’s financial markets with global best practices.