Answer-The Reserve Bank of India (RBI) has asked banks and financial institutions to adopt by _______ a wid...

The Reserve Bank of India RBI has asked banks and financial institutions to adopt by July 1 a widely accepted Alternative Reference Rate, such as the Secured Overnight Financing Rate SOFR, to complete the transition from the scandal-hit London Interbank Offered Rate LIBOR and Mumbai Interbank Forward Outright Rate MIFOR. Banks and private companies were using LIBOR as the benchmark rate for raising funds abroad. It was a key benchmark for setting the interest rates charged on adjustable-rate loans, mortgages and corporate debt. New transactions are now predominantly undertaken using SOFR and the Modified Mumbai Interbank Forward Outright Rate MMIFOR. SOFR is considered a more accurate and more secure pricing benchmark.

Question

The Reserve Bank of India (RB

I has asked banks and financial institutions to adopt by _______ a widely accepted Alternative Reference Rate, such as the Secured Overnight Financing Rate (SOF
R , to complete the transition from the scandal-hit London Interbank Offered Rate (LIBO
R and Mumbai Interbank Forward Outright Rate (MIFO
R .