meant to completely end the new use of libor while allowing a significant portion oflegacy contracts to roll off before the key dollar libor tenors stop publication. three years ago, the arrc estimated that there were approximately $ 200 trillion in outstanding financial contracts using usd libor as a reference rate. the arrc also estimated that more than 80 percent of those contracts would mature by the end of this year. if market participants had stopped new use of libor at that time, we would today have a considerably smaller amount of legacy libor contracts. instead, despite the warnings of the official sector concerning libor, use of usd libor has actually increased in the intervening years. as a result, the arrc now estimates that there are currently almost $ 223 trillion in financial contracts based on usd libor. many of those contracts have better fallback language than was once the case ; the arrc has spent considerable time in recommending more robust fallback language for new libor cash products, and isda has now published its ibor protocol, which has allowed market participants to incorporate more robust fallbacks into legacy derivatives. still, given the sheer size of current exposures, we cannot afford to ignore the problems that an abrupt cessation of usd libor would cause. the path we have laid out — ending new use of libor while providing further time for existing contracts to mature — will give businesses, consumers, and all parties to a contract more certainty that they can count on the original terms of a legacy contract until mid - 2023. the arrc ’ s updated estimates indicate that 60 percent of current libor exposures will mature before mid - 2023. although more would roll off if the end date was further off, the iba has stated clearly that it will not have sufficient panel bank submissions after june 2023 to publish libor on a representative basis. june 2023 represents a realistic outcome that will allow the majority of outstanding contacts to mature. of course, we will also be left with the 40 percent of contracts that will not mature before mid2023, an estimated $ 90 trillion in financial contracts. some of these contracts should already have workable fallback language, but many still have no effective means to replace libor upon its cessation. we continue to believe that legislation is a necessary step to address these contracts. the arrc has proposed legislation with the state of new york, which may be appropriate given that many of the contracts that the arrc

and its subsidiaries, private sector banks and foreign banks. 32. notwithstanding this wide array of legislations of varying vintage, the statutory arrangement has served the system well by helping maintain an orderly banking system. the banking regulation act has not only stood the test of time, but several of its provisions such as the requirement of minimum paid up capital and reserves, restrictions on payment of dividend, transfer of a percentage of profits to reserves, maintenance of slr, restrictions on connected lending, maintaining a percentage of domestic liabilities as assets in india have all helped the reserve bank in preventing crises and maintaining financial stability. 33. needless to say, each of the statutes was crafted in a contemporaneous setting reflecting the needs and concerns of the time ; and almost all the statutes have had to be amended from time to time to reflect changes in circumstances and context. there is a strong case for reviewing all the various legislations and recasting them for a number of reasons. first, the fact that different banks are governed by different laws has created in an uneven playing field and that needs to be levelled to provide for fair competition. second, a single, harmonized legislation applicable to all banks will provide transparency, comprehensiveness and clarity. third, there is also a need to iron out inconsistencies between the primary laws governing the banking sector and other laws applicable to the banking sector. illustratively, the procedure for combination of enterprises under the competition ( amendment ) act, 2007 is inconsistent with the provisions of the banking regulation act dealing with amalgamation of banking companies. such inconsistencies need to be removed while reviewing banking laws. 34. the need for revisiting the statutes has been buttressed by the experience of the global financial crisis. the crisis has thrown up a number of areas requiring significant legislative action either because there is no legislation or because the prevailing legislation is inadequate. illustratively, issues requiring legislative attention include the orderly resolution of failing banks and financial institutions, domestically as well as cross - border, home - host regulatory cooperation in information sharing, convergence of indian accounting standards with ifrs, empowering rbi for consolidated supervision, supervision of financial conglomerates, etc. 35. the task of rewriting the laws governing the banking sector should be driven by several somewhat inter - related motivations. first, there is a compelling need to integrate the various statutes governing different segments of the banking industry and different dimensions of the banking business into a harmonized law to provide clarity