The money market comprises a range of short-term instruments and settlement platforms used for liquidity management.
Uncollateralized interbank borrowing and lending: call money for overnight tenors, notice money for up to 14 days, and term money for tenors beyond 14 days and up to a year. Dealt through the NDS-CALL platform.
Unsecured, negotiable instruments issued by Banks and All India Financial Institutions, typically for tenors between 7 days and 1 year (up to 3 years for All India financial institutions). Used by issuers for short-to-medium-term funding and by investors for yield pickup over comparable-tenor T-Bills.
Unsecured, short-term discount instruments issued by corporates, NBFCs, and primary dealers, generally for tenors of 7 days to 1 year, offering issuers a market-based alternative to bank funding.
An Inter-Corporate Deposit (ICD) is an unsecured borrowing by Primary Dealers from other corporate entities. Minimum tenor of ICD is 1 week.
A repo (repurchase agreement) is a secured, short-term transaction in which one party sells security with an agreement to repurchase it at a later date at a predetermined price — effectively borrowing funds against the security as collateral. A reverse repo is the mirror transaction from the lender's perspective. Repo transactions in Government Securities are executed through platforms such as TREPS and CROMS and are widely used for short-term liquidity management, collateral optimization, and financing of securities inventory. Types of Repo in Indian Market are as follows :
