RBI Guv for greater participation of banks in both India & abroad

The governor noted that participation of domestic banks in derivative markets remains limited with only a small set of active market-makers

Reserve Bank Governor Shaktikanta Das on Monday stressed the need for greater participation of Indian banks in rupee derivatives market, both domestically and offshore, while being prudent.

The governor noted that participation of domestic banks in derivative markets remains limited with only a small set of active market-makers. Also, participation of Indian banks in global markets is growing but it is quite small.

"Domestic banks are dealing with market-makers in global markets rather than with end clients and are yet to emerge as market-makers of note globally," Das said in his keynote address at the FIMMDAPDAI Annual Conference in Barcelona.

Of course, he added banks need to do their own due diligence, assess their risk appetite, and then move forward carefully in this direction.