In order to widen and diversify the Indian money market RBI has introduced many new money market instruments such as 182-days treasury bills, 364-day treasury bills, CDs & CPs. Through these instruments the government, commercial banks, financial institutions and corporate can raise funds through the money market.

What are the developments in money market?

In order to widen and diversify the Indian money market RBI has introduced many new money market instruments such as 182-days treasury bills, 364-day treasury bills, CDs & CPs. Through these instruments the government, commercial banks, financial institutions and corporate can raise funds through the money market.

What is Indian money market structure?

The Indian monetary market has two broad categories – the organized sector and the unorganized sector. Organized Sector: This sector comprises of the governments, the RBI, the other commercial banks, rural banks, and even foreign banks. The RBI organizes and controls this sector.

In which country did Lombardy bankers operate?

Italy
The term originates from the Lombardy region of Italy, which has a rich history of banking houses dating back to the Middle Ages.

What are the operations of money market?

The primary means of money market operations are open market operations, through which the Bank provides loans to financial institutions, or purchases from or sells to financial institutions financial assets such as Japanese government securities.

What are the recent developments in Indian Money Market?

On the recommendation of the Chakkraborty Committee, the RBI introduced 192 days T-bills since 1986. A new instrument in the form of 364 days T-bills was introduced at the end of April 1992. Again, new instruments such as CDs, CPs, and interbank participation certificates have been introduced.

Can Indian money market be called developed money market?

(v) No doubt, a well-developed call money market exists in India, there is absence of other necessary sub-markets such as the acceptance market, commercial bill market, etc.

What are the recent developments that have taken place in the Indian money market?

Who controls Indian money market?

The Reserve Bank derives statutory powers to regulate market segments from specific provisions of the Reserve Bank of India Act, 1934. The prudential guidelines issued to eligible market participants form the broad regulatory framework for Government securities, money market and interest rate derivatives.

Why is it called Lombard lending?

Thanks to its risk-limiting advantages, asset-backed lending is literally the lifeblood of the financial industry. The name “Lombard” has the same origin as Lombardy, the region in northern Italy, whose people, the Lombards, were known as skilled bankers and lenders throughout Medieval Europe.

What is Lombard list?

The Lombard List includes the securities the regulator is ready to accept as collateral backing credit institutions’ refinancing operations. Refinancing to banks is one of the main monetary policy instruments.

What are the functions of the Indian money market?

Here are the main functions of the money market:

• Financing Trade.
• Central Bank Policies.
• Growth of Industries.
• Commercial Banks Self-Sufficiency.
• Treasury Bills.
• Certificate of Deposit (CD)
• Commercial Paper.
• Banker’s Acceptance.

What are the main components of money market?

Characteristics of Money Market Instruments It is a market for short term financial needs, for example, working capital needs. The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money.