RBI has been stressing on the need to carry out due diligence regarding customer appropriateness and suitability of products before offering derivative products to their customers. There is need to use risk mitigation techniques such as collaterals and netting to reduce systemic risks and evolve appropriate accounting guidelines.
There is no doubt that time is running out for us to tackle the climate and environmental crises. What does this mean for banks? This means that the time for preparations is over and the time for action is now.