RBI governor pitches for increased participation of banks in rupee derivatives market

Shaktikanta Das

The Reserve Bank of India (RBI) is focusing on increasing and widening the participation of Indian players in markets for rupee derivatives, domestically and abroad, central bank governor Shaktikanta Das has said.

“Going forward, our focus should be on enhancing and widening the participation of Indian players in markets for INR derivatives, both domestically and offshore, while being prudent,” Das said on April 8. He was speaking at the FIMMDA-PDAI Annual Conference in Barcelona.

Governor added that participation of domestic banks in derivative markets

remains limited with only a small set of active market-makers. Participation of Indian banks in global markets is growing but it is

quite small.

He further said Domestic banks are dealing with market-makers in global

markets rather than with end clients and are yet to emerge as marketmakers of note globally.

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