Skip to main content

Financial Benchmark Administrators

Reserve Bank of India (RBI) has issued directions on Financial Benchmark Administrators (FBA).

Who is Financial Benchmark Administrator (FBA)?

Financial Benchmark Administrator (FBA) means a person who controls the creation, operation and administration (i.e. production and dissemination) of benchmarks.

What is benchmark?

Benchmarks mean prices, rates, indices, values or a combination thereof related to financial instruments that are calculated periodically and used as a reference for pricing, valuation or settlement of financial instruments or any other financial contract.

What is significant and non-significant benchmark?

Significant benchmark means any benchmark notified by Reserve Bank of India (RBI) as a ‘significant benchmark’ taking into consideration its use, efficiency and relevance in domestic financial markets. 

Non-significant benchmark means a benchmark other than the ‘significant benchmarks’.

Which benchmarks are covered by FBA directions?

The directions shall apply to FBAs administering benchmarks based wholly or partially on financial instruments referred to or specified under Section 45W of the RBI Act, 1934.

The directions shall not apply to administration of the following benchmarks –

  • Benchmarks administered and used outside India.
  • Benchmarks determined by a person and used internally by the person for the purpose of pricing or valuation of financial instruments.
  • Benchmarks used by the clearing corporations recognised by RBI or Securities Exchange Board of India (SEBI) for the purpose of internal risk management.

What are the requirement for operating as FBAs?

 

 FBA administering ‘significant benchmark’ FBA administering ‘non-significant benchmark’
Type of Entity A company incorporated in India
Minimum Net-worth ₹5 crore ₹1 crore

What are the requirements for administration of benchmarks by FBA?

FBA shall administer a benchmark only after obtaining authorisation from RBI.

An FBA shall apply to RBI for authorisation in following cases –

  • FBA which is already administering a benchmark shall apply within 3 months from the date of FBA directions.
  • If RBI notifies a ‘non-significant benchmark’ as a significant benchmark, FBA administering the ‘non-significant benchmark’ shall apply within 3 months from the date of notification.


References

Reserve Bank of India. (2023, December 28). 'Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12581&Mode=0


Follow at - Telegram   Instagram   LinkedIn   X   Facebook

Labels:

Comments

Post a Comment

Popular Posts

Unique Transaction Identifier (UTI) for OTC Derivative Transactions

Reserve Bank of India (RBI) has issued directions on Unique Transaction Identifier (UTI) for over-the-counter (OTC) derivative transactions. What are the existing norms for reporting of OTC derivative transactions? At present, all transactions in OTC markets for rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives are reported to the Trade Repository managed by Clearing Corporation of India Limited (CCIL-TR).  What are the directions on Unique Transaction Identifier (UTI) for OTC derivative transactions? Unique Transaction Identifier (UTI), a unique identifier assigned to an OTC derivative transaction, shall be generated / reported for all transactions in OTC derivatives market.  The directions shall be applicable to OTC derivative transactions entered into on or after January 01, 2027. UTI shall be generated in accordance with the UTI Technical Guidanc...
Post a Comment
Read more

FEMA - Borrowing and Lending [including External Commercial Borrowing (ECB) and Trade Credit (TC)]

Reserve Bank of India (RBI) has amended the regulations for borrowing and lending under the Foreign Exchange Management Act, 1999 (FEMA). What are the regulations for External Commercial Borrowing (ECB)? External Commercial Borrowing (ECB) means borrowing by an eligible borrower from a recognised lender. Eligible borrowers – Any person resident in India (other than an individual) that is incorporated, established or registered under a Central or State Act is an eligible borrower, provided such person is permitted for ECB in terms of applicable Acts. An eligible borrower that is under a restructuring scheme or corporate insolvency resolution process may raise ECB only if specifically permitted under the restructuring or resolution plan. An eligible borrower against whom any investigation, adjudication or appeal by a law enforcement agency for contravention of any rule, regulation or direction issued under FEMA is pending, may raise ECB notwithstanding the pending investigation or adjudi...
Post a Comment
Read more

Continuous Clearing and Settlement on Realisation in Cheque Truncation System (CTS) (Updated as on December 24, 2025)

Reserve Bank of India (RBI) has issued direction on continuous clearing and settlement on realisation in Cheque Truncation System (CTS). What is Cheque Truncation System (CTS)? Cheque Truncation System (CTS) involves halting the physical movement of the cheque and its replacement by images of the instrument and the corresponding data contained in the MICR line.  In CTS, 3 images are taken of each cheque – front Gray Scale, front Black & White and back Black & White. MICR (Magnetic Ink Character Recognition) is a 9-digit code printed at the bottom of cheques using magnetic ink – first 3 digits indicate City Code, middle 3 digits indicate Bank Code and the last 3 digits indicate Bank Branch Code. Only CTS-2010 standards compliant instruments can be presented for clearing through CTS. The presenting banks which truncates the cheques need to preserve the physical instruments for 10 years. From when will the continuous clearing and settlement on realisation in CTS be implemented...
Post a Comment
Read more

Are banks deposits insured? (updated as on February 06, 2026)

People keep their savings (and earnings) in various bank accounts. But what happens if a bank fails (i.e. closes down)? Can the depositors get their money back? Are deposits with banks insured? What is deposit insurance? The deposits kept with the banks are insured by the banks with Deposit Insurance and Credit Guarantee Corporation (DICGC). In the event of failure of a bank, DICGC pays the depositors up to the insured amount of the deposits. Which banks are covered for deposit insurance? Public Sector Banks Private Sector Banks Foreign Banks – branches of foreign banks functioning in India Small Finance Banks Payment Banks Regional Rural Banks Local Area Banks State Co-operative banks District Central Co-op banks Urban Co-op  Primary cooperative societies are not insured by DICGC. A list of banks insured with DICGC is available at https://www.dicgc.org.in/FD_ListOfInsuredBanks.html Which deposits are covered for deposit insurance? DICGC insures all deposits such as savings, fixed,...
Post a Comment
Read more

FEMA - Regulations on Guarantees

Reserve Bank of India (RBI) had issued regulations governing guarantees under the Foreign Exchange Management Act, 1999 (FEMA). What is a guarantee? A guarantee, including a counter-guarantee, means a contract, by whatever name called, to perform the promise, or discharge a debt, obligation or other liability (including a portfolio of debts, obligations or other liabilities), in the event of default by the principal debtor. Who are the participants in a guarantee transaction? Principal debtor – a person in respect of whose default the guarantee is given. Surety – a person who gives a guarantee. Creditor – a person to whom the guarantee is given. When can a person resident in India act as surety / principal debtor? A person resident in India may act as a surety / principal debtor for a guarantee, subject to conditions that – The underlying transaction for which the guarantee is being given or arranged is not prohibited under FEMA guidelines. The surety and the principal debtor are eligi...
Post a Comment
Read more