No loans against IDRs, banks told

However, banks are allowed to provide loans against shares and debentures.  “It has been decided that no bank should grant any loan or advance for subscription to IDRs. Further, no bank should grant any loan against security or collateral of IDRs issued in India,” the RBI notification said.  Meanwhile, in yet another development, RBI on placed on its website its Working Group report on 'Reporting of over-the-counter (OTC) Interest Rate and Forex Derivatives. The key recommendations of the group headed by Chairman P Krishnamurthy was to review the structure of OTC derivatives market in India and availability of information for regulators and market participants and experience in relation to reporting of OTC trades and setting up of trade repository.

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