New Delhi: Private lender ICICI Bank on Thursday introduced that it has executed its first time period mortgage and cross forex swap by-product transactions linked to Secured Overnight Financing Rate (SOFR).
The transactions have been carried out with a company consumer by means of the financial institution's worldwide places of work. ICICI Bank mentioned that these transactions point out its preparedness in direction of easy transition from US Dollar LIBOR (London Interbank Offered Rate) to transactions linked to Alternative Reference Rates (ARR).
Earlier in January, ICICI had executed its first interbank cash market transaction linked to SOFR, which has been recognized because the alternative for USD LIBOR.
Anuj Bhargava, Head - Global Clients Group, ICICI Bank mentioned, "The lender has been actively working with its clients for seamless transition from LIBOR to ARRs. These transactions are just the start of the move towards the ARRs."
B Prasanna, ICICI Bank's Group Head - Global Markets, Sales, Trading and Research, mentioned, "With the slew of measures announced by regulators globally, there is an increased shift towards ARR linked products in markets. As the cessation deadline approaches, the liquidity in ARR linked products will increase and ICICI Bank is ready to widen its product suite to meet the customer requirements."
The Reserve Bank of India (RBI) had, in August final 12 months, requested banks to border a Board-approved plan, outlining an evaluation of exposures linked to the LIBOR and the steps to be taken to deal with dangers arising from the cessation, together with preparation for the adoption of the ARR.
SOFR is linked to US treasury market transactions. Libor is predicted to be phased out on the finish of 2021.
Contactless Payment Solution Via ICICI Bank's App
In a separate improvement, the lender on Wednesday had launched a contactless cost service by means of its banking app, iMobile Pay, that permits clients to faucet their smartphones to pay at POS (Point of Sale) machines of service provider shops. "The service offers improved convenience to over 1.5 crore debit and credit card customers of the Bank as they will no longer need to carry their cards for payments at retail stores," ICICI Bank had mentioned.
The facility of 'Tap to Pay' by means of iMobile Pay is now out there on Visa playing cards and it'll quickly be activated on Mastercard playing cards too, it had acknowledged.
The financial institution additional talked about that for transactions above Rs 5,000, clients should enter their card PIN (Personal Identification Number) together with waving the telephone close to the POS system.