"RBI should introduce the product that would give choice to a client to get into interest rate option to meet his financing requirements," Yes Bank group president (financial markets & private banking) Ajay Mahajan said on the sidelines of the 'Financial Derivatives Conference' organised by Reuters in Mumbai on Wednesday.
Mahajan said banks have already approached the regulator to introduce interest rate option as currency option already exists in the market.
Hemant Mishir, Standard Chartered Bank head-India (global sales & wholesale banking) said the credit derivatives like interest rate options was the need of the emerging economy.
"The dialogue is on with RBI for having the interest rate option in place. However, the legal framework for this new product is in the market", Mishir said.
According to Neeraj Gambhir, ICICI Bank joint general manager and proprietary trading group head, the Jaspal Bindra committee has already recommended the introduction of interest rate options.
Gambhir added that RBI had already launched several other derivative products recommended by the committee and is expected to consider it soon.
