What is in news : Reserve Bank of India (RBI) issued an advisory to banks and other financial institutions to be prepared for year-end transition from London Interbank Offered Rate (Libor).

Why this move : Investigation led by Financial Services Authority (FSA) revealed banks were able to manipulate these rates

What is LIBOR:

• Full Form – London Interbank Offered Rate
• Interest-rate average
• Calculated on the basis of estimates submitted by leading banks in London
• Primary benchmark for short-term interest rates across the world
• To be phased out by end of 2021

MIFOR

• Full form – Mumbai Interbank Forward Offer Rate
• Rate that Indian banks use as a benchmark for setting prices on forward-rate agreements and derivatives
• It is based on LIBOR