The Reserve Bank of India (RBI) wants Indian banks to reveal information about their dealings with ailing banks such AIG, Lehman Brothers, Fortis, Washington Mutual and Wachovia Bank, reports the Economic Times.
 
All the banks will have to reveal their on- and off-balance sheet exposures to these banks. The finance ministry had earlier asked banks to provide their dealings with Merrill Lynch and Lehman Brothers. The banks were required to give the information by September 30. The RBI wants to analyse the position of the Indian banks in light of the financial crisis in the overseas market. According to the RBI, the information would help regulators to be in control and manage any crisis.

Concerned about the financial crisis, Indian banks are no longer willing to take risks with US financial majors. Many of them have resorted to freezing or cancellation of deals with their local arms, which may be worth nearly Rs 2,000 crore ($426 million). Indian banks want to get the full information on the future course of action of these institutions before going ahead with these deals. X

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