Banks and Primary Dealers borrow and lend overnight or for the short period to meet their short term mismatches in fund positions. This borrowing and lending is on unsecured basis which means that no collateral in required for borrowing or lending in this market.
Participants in call/notice money market currently include Commercial banks (excluding RRBs), Cooperative banks and Primary Dealers (PDs), both as borrowers and lenders. Non-bank institutions (NBFCs) are not permitted in the call/notice money market with effect from August 6, 2005.
Eligible participants are free to decide on interest rates in call/notice money market. But the calculation of interest payable would be based on FIMMDA’s (Fixed Income Money Market and Derivatives Association of India) Handbook of Market Practices.
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April 25 Mint - As market cap fell making shareholders poorer by ₹39,768.36 crore, Uday Kotak holding a 29.71 per cent stake also lost ₹10,225 crore in a day. Read more
April 24 Business Standard - The Reserve Bank of India has asked private sector lender Kotak Mahindra Bank not to issue new credit cards and barred new customer onboarding through the bank’s online and mobile banking channels. Read More
April 13 Moneycontrol - Nakul Nath, the son of former Madhya Pradesh chief minister Kamal Nath, is the richest candidate contesting in the first phase of the Lok Sabha election, as per Association for Democratic Reforms (ADR). Read more
April 13 Who funds the IMF? The money the IMF lends to its members comes from member countries, mainly through their payment of quotas. However multilateral and bilateral arrangements can supplement quota funds and plays a critical role in the IMF’s support for member countries in times of crisis. IMF funds come from three sources: member quotas, multilateral and bilateral borrowing agreements. Member quotas : Member quotas are the primary source of IMF funding. A member country’s quota reflects its size and...
January 05 National Investment and Infrastructure Fund (NIIF) is a sovereign wealth fund and is registered with the Securities and Exchange Board of India (SEBI). It provides long-term capital for infra-related projects. It has been created under SEBI Regulations, 2012 as a Category II Alternate Investment Fund (AIF). Some of the major objectives of NIIF include A. Raising funds through suitable instruments B. To attract the anchor investors for their participation as partners in NIIF C. To consider and approve the...
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July 22 Securitization is the conversion of illiquid assets such as the leases, loans, mortgages, and credit card debts of its customers of a financing company into highly liquid securities to be purchased or sold in the financial markets by clubbing them together. It is basically the pooling of assets that a finance company does not want to service anymore and converting them into securities for investors to invest. This process enhances liquidity in the market, and it serves as a useful tool, especially for...
July 22 e-Kuber is the core banking solution of the RBI, which enables each bank to connect their single current account across the country. Core banking solutions can be defined as a solution that enables banks to offer a multitude of customer-centric services on a 24x7 basis from a single location. All the commercial banks, primary dealers, scheduled urban co-operative banks, insurance companies, and provident funds who maintain funds accounts and securities accounts with the Reserve Bank of India are members of this...
July 03 What is the SDR? The SDR is an international reserve asset. The SDR itself is not a currency but an asset that holders can exchange for currency when needed. The SDR serves as the unit of account of the IMF and other international organizations. Special Drawing Rights (SDR) was created by the International Monetary Fund in 1969. The SDR serves as the unit of account of the IMF.Though it is not a real currency, it is just a unit of account. What is the purpose of the SDR? The IMF created the SDR as a...
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