The open interest has increased from ₹ lakh crore in FY 2017 to ₹ lakh crore in current FY 2023. There is also a growing offshore market for MIBOR based OIS (ND-OIS). In the currency market, the USD-INR Reference Rate is used by many domestic users, including corporates. The reference rate is used for settlement of non-deliverable forwards (NDFs) and exchange-traded futures as well.
The average daily turnover in INR NDFs has increased from around $ billion in 2016 to $ 46.4 billion in 2022. During the same period, the average daily turnover in exchange traded currency futures in India increased from $ 2.8 billion to $ 6.6 billion. As markets have grown, the pool of assets using FBIL benchmark rates for valuation has also grown. 9.