Sr.

Items

Measures

Announcement Date

No.

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

operations through PDs was extended from end-

December 1999 to end-June 2000.

Above permission extended to end-December

April 27, 2000

2000.

Above permission extended further to end-June

October 10, 2000

2001.

2.

Certificates of Deposit

The minimum maturity of CDs reduced from 3

April 27, 2000

months to 15 days.

Restriction on transferability period for CDs

October 10, 2000

proposed to be withdrawn.

3

Commercial Paper

Draft guidelines on CP issued.

July 6, 2000

Final guidelines on CP issued. Greater

October 10, 2000

flexibility to corporates to raise resources

through CP.

4.

Money Market

MMMFs permitted to offer 'cheque writing'

April 29, 1999.

Mutual Funds (MMMFs)

facility to their investors.

MMMFs allowed to be set up as a separate

November 2, 1999

entity in the form of a 'Trust' only and not in

the form of a Money Market Deposit Account

(MMDA).

MMMFs brought within the purview of SEBI

March 7, 2000

regulations. Banks required to seek clearance

from the Reserve Bank for setting up MMMFs.

5.

Repos and Reverse

Non-bank entities permitted to undertake repos.

April 20, 1999

Repos Market

35 non-banking entities (24 of which were earlier

July 29, 1999

permitted to undertake only reverse repos)

permitted to undertake repos and reverse repos

in notified government securities.

The Reserve Bank permitted all the 64 non-bank

March 7, 2000

entities, maintaining SGL and current account

with the Reserve Bank, Mumbai, to undertake

repos and reverse repos in notified government

securities.

6.

Forward Rate

Guidelines for undertaking FRAs/ IRSs issued.

July 7, 1999

Agreements (FRAs)/

Commercial Banks (excluding RRBs), PDs and

Interest Rate Swaps (IRSs)

all-India Financial Institutions were allowed to

undertake FRAs/IRSs for their own balance sheet

management and for market making purposes.

Corporates were allowed to undertake FRAs/IRSs

only for hedging their own balance sheet

exposures.

Mutual Funds were allowed to undertake FRAs/

October 29, 1999

IRSs with banks, PDs and FIs for hedging their

own balance sheet risks. MFs were, however, not

allowed to undertake market making in FRAs/

IRSs.

'Interest rates implied in the foreign exchange

April 27, 2000

forward market' permitted to be used as an

additional benchmark in the pricing of rupee

interest rate derivatives.

7.

Term Deposits raised

Mandatory rating for term deposits accepted by

October 10, 2000

by FIs

AIFIs.

8.

Other Measures

Scheduled commercial banks permitted to offer

November 2, 1999

'cheque writing facility' to gilt funds and liquid

income schemes of mutual funds predominantly

investing in money market instruments (not less

than 80 per cent of their corpus) subject to the

same safeguards prescribed for MMMFs.