MIBOR

MIBOR--Mumbai interbank offered Rate.
It is the rate of interest for interbank short-term loans. It is the interest rate charged by a lending bank to the borrower bank for short-term loans taken by the bank.
 Banks borrow and lend money in interbank market to maintain liquidity levels  also to fulfill statutory reserve requirements   like CRR, SLR laid down by Reserve Bank of India to banks.
 Calculation of MIBOR

• MIBOR is calculated by averaging the lending interest rates of major banks in India. It is the rate at which one bank lend money to another bank in a interbank market.