New Delhi: Private lender ICICI Bank on Thursday announced its first term loan and cross currency swap derivative transactions combined with the Secure Overnight Financial Ratio (SOFR).
Transactions with a corporate customer were made through the bank’s international offices. ICICI Bank signifies its readiness for the smooth transition of these transactions from US Dollar Liberal (London Interbank Exchange Rate) to Exchange Reference Rates (ARR).
Earlier in January, ICICI merged its first interbank money market transaction with SOFR, which was identified as an alternative to USD LIBOR.
Anuj Bhargava, Chairman, ICICI Bank’s Global Customer Group, said, “The lender has been actively working with its clients for the seamless transition from LIBOR to ARRs. These transactions are just the beginning of the move towards ARRs.”
P. Prasanna, Group Chairman, ICICI Bank, said, “Global markets, sales, trade and research have witnessed an increase in the number of ARR-linked products in the market due to a number of measures announced by regulators globally. The product package is ready to expand.
In August last year, the Reserve Bank of India (RBI) asked banks to devise a board-approved plan to address the risks of termination, including the evaluation and preparation of disclosures related to LIBOR. For ARR adoption.
SOFR is linked to US Treasury market transactions. Libor is expected to be phased out by the end of 2021.
Non-contact payment solution through ICICI Bank App
In a separate development, the lender on Wednesday launched a non-contact payment service through its banking app iMobile Pay, which allows customers to pay for their smartphones at POS (Point of Sale) machines at merchant stores. “The service offers advanced convenience to over 1.5 crore debit and credit card customers as they no longer have to carry their cards to make payments at retail outlets,” ICICI Bank said.
The ‘Tap to Pay’ feature through iMobile Pay is now available on Visa cards, it said, adding that it will soon be implemented on MasterCard cards as well.
The bank also said that for transactions above Rs 5,000, customers need to move their PIN (Personal Identification Number) and the phone near the POS device.