Updated By: LatestGKGS Desk
Bank: Money market in India And RBI Reports
Bank: The money market, short-term funds, development Financial Institution (DFI), And Certificate of Deposit (CD)
There were many market institution they are Government of India and other sovereign bodies, Banks and Development financial institution, PSUs (public sector undertaking ), private sector organization, The government.
Most of the instruments that are traded in the money market are issued by Government of India, State government and other statuary bodies. Instruments that are issued by the development Financial Institution (DFI) and Banks that carry the highest rating among private sectors as they have a connection with the Indian Government.
There were various kinds of instruments of Money market that are:
1-call money -amount borrowed or lent on demand for a short period of time .if the time is more than 14 days then it is known as notice money.
2-Treasury bill-lowest risk is with this instrument for the short term. Treasury bill is issued by RBI at the prefixed date and for a fixed amount.
3-certificate of deposits- After T-bill, the next lowest risk category investment option is Certificate of Deposit( CD ) issued by Banks and financial institution .we can say that it is a negotiable promissory note, secure and short-term, of up to a year, in nature.
These instruments are normally issued in the multiples of five crores for 7days to 364 days.
