Appendix Table I.2: Money Market Policy Measures - આરબીઆઈ - Reserve Bank of India
Appendix Table I.2: Money Market Policy Measures
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Sr. |
Items |
Measures |
Announcement Date |
No. |
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1 |
2 |
3 |
4 |
1. |
Call/Notice Money Market |
Permission to non-bank entities to lend in the |
October 29, 1999 |
call/notice money market by routing their |
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operations through PDs was extended from end- |
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December 1999 to end-June 2000. |
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Above permission extended to end-December |
April 27, 2000 |
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2000. |
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Above permission extended further to end-June |
October 10, 2000 |
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2001. |
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2. |
Certificates of Deposit |
The minimum maturity of CDs reduced from 3 |
April 27, 2000 |
months to 15 days. |
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Restriction on transferability period for CDs |
October 10, 2000 |
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proposed to be withdrawn. |
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3 |
Commercial Paper |
Draft guidelines on CP issued. |
July 6, 2000 |
Final guidelines on CP issued. Greater |
October 10, 2000 |
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flexibility to corporates to raise resources |
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through CP. |
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4. |
Money Market |
MMMFs permitted to offer 'cheque writing' |
April 29, 1999. |
Mutual Funds (MMMFs) |
facility to their investors. |
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MMMFs allowed to be set up as a separate |
November 2, 1999 |
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entity in the form of a 'Trust' only and not in |
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the form of a Money Market Deposit Account |
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(MMDA). |
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MMMFs brought within the purview of SEBI |
March 7, 2000 |
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regulations. Banks required to seek clearance |
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from the Reserve Bank for setting up MMMFs. |
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5. |
Repos and Reverse |
Non-bank entities permitted to undertake repos. |
April 20, 1999 |
Repos Market |
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35 non-banking entities (24 of which were earlier |
July 29, 1999 |
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permitted to undertake only reverse repos) |
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permitted to undertake repos and reverse repos |
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in notified government securities. |
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The Reserve Bank permitted all the 64 non-bank |
March 7, 2000 |
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entities, maintaining SGL and current account |
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with the Reserve Bank, Mumbai, to undertake |
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repos and reverse repos in notified government |
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securities. |
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6. |
Forward Rate |
Guidelines for undertaking FRAs/ IRSs issued. |
July 7, 1999 |
Agreements (FRAs)/ |
Commercial Banks (excluding RRBs), PDs and |
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Interest Rate Swaps (IRSs) |
all-India Financial Institutions were allowed to |
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undertake FRAs/IRSs for their own balance sheet |
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management and for market making purposes. |
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Corporates were allowed to undertake FRAs/IRSs |
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only for hedging their own balance sheet |
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exposures. |
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Mutual Funds were allowed to undertake FRAs/ |
October 29, 1999 |
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IRSs with banks, PDs and FIs for hedging their |
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own balance sheet risks. MFs were, however, not |
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allowed to undertake market making in FRAs/ |
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IRSs. |
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'Interest rates implied in the foreign exchange |
April 27, 2000 |
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forward market' permitted to be used as an |
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additional benchmark in the pricing of rupee |
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interest rate derivatives. |
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7. |
Term Deposits raised |
Mandatory rating for term deposits accepted by |
October 10, 2000 |
by FIs |
AIFIs. |
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8. |
Other Measures |
Scheduled commercial banks permitted to offer |
November 2, 1999 |
'cheque writing facility' to gilt funds and liquid |
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income schemes of mutual funds predominantly |
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investing in money market instruments (not less |
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than 80 per cent of their corpus) subject to the |
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same safeguards prescribed for MMMFs. |
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