Reserve Bank is examining the recommendations made by Working Group on “Enhancing Liquidity in G-Sec and Interest Rate Derivatives Market” (Chairman: R. Gandhi) relating to introducing IRF based on overnight call borrowing rate, fine tuning the product design of the delivery-based 10-yr IRF by permitting single-bond contracts, larger contract size, etc. to revive IRF market.
This requires availability of professionally trained researchers and technicians to customise standard technologies to suit the domestic environment. In the Indian context, the foreign collaboration and technological transfer in the industry has been enabled by the presence of skilled human resources to adapt and utilize the new technology to domestic requirements and production processes.