Derivatives deals don't pose any systemic risks, says RBI

The Reserve Bank of India deputy governor, V Leeladhar on Thursday said that the derivative deals, some of which are locked in legal disputes, do not pose any systemic risks.

Leeladhar was talking to mediamen on the sidelines of a conference organized by the Indian Merchants' Chamber and the Institute of Chartered Accountants of India.

Leeladhar reiterated that there are no reasons for disputes if banks follow the RBI norms in letter and spirit. The RBI governor YV Reddy had made a similar statement a couple of weeks ago.

A large number of mid-sized companies have gone to court alleging mis-selling of derivative instruments by banks. On their part, banks are saying that the companies are raising these concerns now as the deals are no longer in their favour.