Master Direction – Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021
The Reserve Bank of India has issued Master Directions for Call, Notice, and Term Money Markets, effective from April 1, 2021.
The directions define various terms, including “Bank”, “Call Money”, “Capital Funds”, “Electronic Trading Platform”, “Exchange”, and others.
The participants in these markets include banks, primary dealers, small finance banks, payment banks, and others.
The directions also specify prudential limits for outstanding borrowing transactions in these markets, as outlined in Table 1.
These limits vary by participant category, with the goal of maintaining financial stability and preventing excessive risk-taking.
The Master Directions aim to regulate and supervise the Call, Notice, and Term Money Markets, ensuring their smooth functioning and stability.
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