The bankruptcy of Lehman Brothers has started the waves of unrest in the financial sector of the world. The banking and financial sector of India is also expected to be hit by the financial crisis of US bank.

The Reserve Bank of India has advised all banks to sort out their deals with Lehman. The apex bank arranged a meeting of all the leading banks to deal with the situation. Many Indian banks have deals such as interest rate swaps (IRS) with Lehman.

The representatives of all banks decided to handle the situation collectively. Some banks also advised to scrap all deal with Lehman on the same day. 

No consensus would develop at the meeting on currency exchange issues and Foreign exchange issue.

The next meeting is likely to take place next week. The apex bank has also suggested various measures to increase liquidity in the market. The banks are allowed to raise money from rapo window instead of directly from the market.