Apr 1, 2008

No systemic impact: RBI chief

Reserve Bank of India Governor Y V Reddy said that there is no systemic impact as the transactions are "micro issues".

 Reddy told reporters that the RBI had issued comprehensive guidelines on derivatives trading and there would be no problem as long as the norms were followed in letter and spirit.

This is Reddy's first public statement on the issue. The finance minister had said on Friday that banks should stay away from complex financial products.

The RBI is analysing the representations from some of the firms that have been hit by the problem.

In addition, the regulator is in dialogue with select banks that have been active in the derivatives market, he said.

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