The Reserve Bank of India (RBI) announced it will be introducing a benchmark based on secure money markets, the Secured Overnight Rupee Rate (SORR).
RBI had set up the Committee on the MIBOR Benchmark to review the Rupee interest rate benchmarks in the country, especially the use of Mumbai Interbank Outright Rate (MIBOR), and to examine the need for transition to new benchmarks.
In line with the recommendations, industry feedback and reflective of the current market dynamics, it is proposed to develop a benchmark based on the secured money markets (both basket repo and triparty repo) – the Secured Overnight Rupee Rate (SORR). Financial Benchmarks India Limited (FBIL) is being requested to take the proposal forward.