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    Question

    Which of the following institution in India is appointed by the RBI for valuation of portfolios of government securities and state development loans? This will also play a crucial role in deciding the external benchmark linked lending of loans by PSB’s?

    A The Fixed Income Money Market and Derivatives Association of India Correct Answer Incorrect Answer
    B Financial Benchmark India Pvt Ltd Correct Answer Incorrect Answer
    C All India Banking Association Correct Answer Incorrect Answer
    D Clearing Corporation of India Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    The Reserve Bank has appointed the Financial Benchmark India Pvt Ltd (FBIL) for valuation of portfolios of government securities, which earlier used to be done by FIMMDA. FBIL will commence publication of the g-sec (government securities) and SDL (state development loans) valuation benchmarks based on the extant methodology. FBIL would also compute and disseminate the daily reference rate for spot USD/INR and other major currencies against the rupee which used to be done by RBI itself. Banks, non-banking financial companies (NBFCs), primary dealers, co-operative banks and all financial institutions which are required to value government securities as per FIMMDA may use FBIL prices from April 2018 Onwards

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