2023
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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July 2023
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May 2023
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August 2023
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June 2023
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Detailed explanation-1: -RBI ask banks to complete transition away from LIBOR from July 1. The Reserve Bank of India on Friday issued an advisory to banks and other RBI-regulated entities, emphasising the need to take steps to ensure a complete transition from the London Interbank Offered Rate (LIBOR) from July 1, 2023.
Detailed explanation-2: -Clients with LIBOR exposures due to mature beyond 2021 (or June 2023, for certain USD LIBOR settings) are exposed to the risk of the permanent cessation of LIBOR.
Detailed explanation-3: -The British Bankers’ Association launched LIBOR in 1986-initially with only three currencies-the dollar, the yen, and the pound sterling. LIBOR was established as a standardized benchmark for the pricing of floating-rate corporate loans.
Detailed explanation-4: -The current RBI’s accounting year runs from July to June while the government follows the April-March fiscal year.