New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Question

    Which market is the new SORR benchmark derived from?

    A Equity markets Correct Answer Incorrect Answer
    B Unsecured interbank markets Correct Answer Incorrect Answer
    C Secured money markets Correct Answer Incorrect Answer
    D Commodity futures market Correct Answer Incorrect Answer
    E Global forex markets Correct Answer Incorrect Answer

    Solution

    SORR, the Secured Overnight Rupee Rate, is derived from secured money markets, including basket repo and triparty repo (TREP). This benchmark is more transparent and trade-based than the current MIBOR, which relies on polled rates. SORR reflects actual transactions, offering greater accuracy and stability.

    Practice Next

    Relevant for Exams: