What are the most active instruments of money market in India?
The most active segment of the money market is “Overnight Call market” or repo.
What is money market instruments RBI?
The money market instruments mainly comprise: (i) call money, (ii) certificates of deposit, (iii) treasury bills, (iv) other short-term government securities transactions, such as, repos, (v) bankers’ acceptances/commercial bills, (vi) commercial paper, and (vii) inter-corporate funds.
What is money market account in India?
Money Market is a segment of the financial market in India where borrowing and lending of short-term funds take place. The maturity of money market instruments is from one day to one year. In India, this market is regulated by both RBI (the Reserve bank of India) and SEBI (the Security and Exchange Board of India).
What do you mean by Indian money market?
The Money market in India is a correlation for short-term funds with maturity ranging from overnight to one year in India including financial instruments that are deemed to be close substitutes of money.
How does money market work in India?
What is money market explain its role India?
Money market is a financial market wherein lending and borrowing of short-term funds take place. It is a market for ‘near money’ i.e. short-term instruments. These instruments are highly liquid, less risky, and easily marketable with a maturity period of one year or less than one year.
What is meant by Indian money market?
Who regulates the money market instruments in India?
RBI (Reserve Bank of India)
RBI (Reserve Bank of India) controls the money market. Money Market is a big segment of the financial market in India where the borrowing and lending function occurs in short-term funds which take place in these markets. The maturity of the money market instruments is from minimum one day to a maximum of one year.
What is call money market in India?
The call/notice money market forms an important segment of the Indian money market. Under call money market, funds are transacted on overnight basis and under notice money market, funds are transacted for the period between 2 days and 14 days.
What are the functions of 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 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.
What is the structure of Indian money market?
Who regulates money market in India?
What is the structure of Indian Money Market?
What is meant by Indian Money Market?
What are the different types of money market instruments in India?
Types of Money Market Instruments in India. 1 1. Treasury Bills. T-bills are one of the most popular money market instruments. They have varying short-term maturities. The Government of India 2 2. Commercial Bills. 3 3. Certificate of Deposit. 4 4. Commercial Paper. 5 5. Call Money.
What is the maturity of money market instruments?
Maturity of money market instruments is usually up to one year. At the same time, the maturity of capital markets instruments is longer. They don’t have a specific time frame. What is the T bill? A treasury bill (T Bill) is a short term government debt obligation. The Reserve Bank of India issues it. It has a maturity of one year or less.
Who are the main players in the Indian money market?
It’s primary players are the Reserve Bank of India (RBI), commercial banks and financial institutions like LIC, etc., The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year.
What are the types of money market?
Money markets are unorganised markets. Financial institutions, banks, brokers and money dealers trade for a short period. T Bills, commercial paper, certificate of deposit, trade credit, bills of exchange, promissory notes, call money, etc. are some of the examples of money market instruments.