Money Market
Banking · मुद्रा बाजार · 12 facts
Money Market: short-term borrowing/lending (up to 1 year), regulated by RBI
Treasury Bills (T-Bills): issued by RBI for govt; 91/182/364 day tenures
T-Bills issued at discount, redeemed at face value; zero coupon instruments
Commercial Paper (CP): unsecured short-term note by companies (7 days-1 year)
Certificate of Deposit (CD): time deposit by banks at higher interest rates
Call Money: overnight lending between banks (1-14 days)
Notice Money: lending between banks for 2-14 days period
Term Money: lending between banks for 15 days to 1 year
Repo: short-term borrowing from RBI against govt securities (collateral)
CBLO (Collateralized Borrowing): replaced by TREPS since November 2018
MIBOR: Mumbai Interbank Offered Rate — benchmark for money market
Money Market Mutual Funds invest in T-Bills, CP, CD — low risk, short-term