Tri-party repo” means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. It is also known as TREPS.
The Clearing Corporation of India Limited (CCIL) would be the Central Counterparty to all trades from Tri Party Repo Dealing System (TREPS) and would also perform the role and responsibilities of Triparty Repo Agent, in terms of Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 as amended from time to time.
All the repo eligible entities are entitled to participate in Triparty Repo. The entity type admitted include, Public Sector Banks, Private Banks, Foreign Banks, Co-operative Banks, Financial Institutions, Insurance Companies, Mutual Funds, Primary Dealers, Bank cum Primary Dealers, NBFCs, Corporates, Provident/ Pension Funds, Payment Banks, Small Finance Banks, etc.
Repo rate or REPurchase Options rate is the rate at which commercial banks and financial institutions borrow money from the RBI for a short term, usually less than a year.
Ask Anything, Know Better
June 16 Central Bank Digital Currency (CBDC) represents a digital form of a country's national currency also known as “Digital Rupee” or “e₹”. It is a legal tender like any other currency which is issued and regulated by the central bank (RBI), the only difference is that it is in a digital form. It is the same as a sovereign currency and is exchangeable one-to-one at par (1:1) with existing currency. Digital rupee (e₹) will offer features of physical cash like trust, safety and settlement...
May 21 TREPS, short for "Treasury Bills Repurchase," is a financial instrument widely used in the money market. In simple terms, it represents a short-term borrowing and lending arrangement between two parties – a borrower and a lender. In a TREPS transaction, the borrower, often a mutual fund, pledges government securities, such as Treasury Bills, with the lender (usually a bank or a financial institution) to borrow funds. The lender provides the funds to the borrower, and in return, the borrower agrees to...
April 23 The price of 10 gram (24 carat 99.9% purity) gold is approx. Rs 74,000 in April 2024 and the gold price was Rs 24,740 in 2015. So, it took 9 years for the gold prices to triple. Earlier Gold prices tripled between 2006-2015 when in this 9 year period, the prices jumped from Rs 8,250 in 2006 to 24,740 in 2015. Before this, it took almost 19 years for the gold price to triple from Rs 2,570 in 1987 to 8,250 in 2006. If we assume that the gold triples every 9 years, then gold prices per 10 gm...
March 24 The Reserve Bank of India (RBI)’s income grew 47% to ₹2.35 lakh crore in 2022-23 which was up from ₹1.6 lakh crore in the previous year. The RBI is a not-for-profit organization then how did it make profit of 2.3 lakh crores? There are many ways. One of them is called Seigniorage. Seigniorage is a term for the profits that the RBI makes by printing currency. If the RBI prints a ₹100 note and gives it to the banks for circulation, the bank doesn’t get it for free. They have to buy the note and transfer...
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 02 NDS, which stands for Negotiated Dealing System, is a fully electronic trading platform that is instituted and operated by the Reserve Bank of India to simplify the issuing and exchange of government securities and other types of money market instruments. Previously, the country’s government security market was primarily telephonic, which meant that buyers and sellers had to place trades over the phone, submit physical transfer forms, and issue checks for the settlement of funds to the RBI. This telephonic-based...
March 19 SLR is the minimum proportion of deposits that the commercial bank must keep within itself in form of gold, cash and other government securities. यह जमा का न्यूनतम अनुपात है जिसे वाणिज्यिक बैंक को सोना, नकदी और अन्य सरकारी प्रतिभूतियों के रूप में अपने पास रखना चाहिए। SLR is determined by RBI on quarterly basis. The banks are obligatory to...
Comments
Write Comment