The Reserve Bank has issued draft guidelines on the above two aspects, which are in the process of finalisation on the basis of the feedback received from banks and other market players. (ii)  Derivatives – comprehensive guidelines  Derivatives play a critical role in shaping the overall risk profile of banks.
Over the years, banks have been increasingly using derivatives for managing risks and have also been offering these products to corporates. The Reserve Bank has issued several guidelines to banks from time to time on various derivative instruments.