Question
What is MIBOR?
Solution
MIBOR (Mumbai Interbank Offer Rate) is the rate at which banks borrow unsecured funds from one another in the interbank market. National Stock Exchange (NSE) launched the Mumbai Interbank Offer Rate (MIBOR) and Mumbai Interbank Bid Rate (MIBID) in June, 1998. The NSE developed a benchmark rate for the term money market, like the 14-day, 1-month and 3-month MIBOR. The same was later named as FIMMDA-NSE MIBID/MIBOR rate in due course. The rate is representative of 30 banks and primary dealers.
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