LIBOR stands for London Interbank Offered Rate. An interest rate average submitted by leading UK banks, it is a benchmark rate against which global lenders currently mark their transactions. In 2012, it came to light that many global banks had colluded to manipulate the LIBOR rate. As a result, many central banks and regulatory authorities decided to move away from the benchmark. In India too, the Reserve Bank of India advised banks to stop entering into LIBOR-linked contracts latest by December 31, 2021. This transition is likely to have some transitory impact on banks.