Indian Money

Market…

Project ByRamkuwar 21Vaibhav 10David 24Sagar 25Atul 33

SYBBI

What is Money Market?Indian

RBI Defines Money Market as:The center for dealing, mainly of a short-term character, in monetary assets, it meets the short-term requirements of borrowers and provides liquidity or cash to lenders.

Dr. D. Subbarao(RBI Governer)

Functions It caters to the short-term financial needs of the

economy. It helps the RBI in effective implementation of

monetary policy. It helps in allocation of short-term funds through inter-

bank transactions and money market instruments. It facilitates economic development.

Dichotomy Lack of Co-ordination and

Integration Diversity in Interest Rates Seasonality of Money Market Shortage of Funds

Features

Organised SectorUnorganised Sector

Structure of Indian Money Market

1ORGANISED

SECTOROF Indian Money

market

Organised Sector

Call and Notice Money Market

Treasury bill Market

Commercial Bills

Certificate of Deposits

UNORGANISED

SECTOROF Indian Money

market

2

Unorganised Sector

Indigenous Bankers

Non - Banking Financial Companies Chit Funds Nidhis Loan or

Finance Companies

Money Lenders

Measures to strengthen the

Indian Money Market

3

2

1Introducing New Money Market Instruments

Measures to

strengthen the

Indian Money Market

Money Market Mutual Funds

Refinance by RBI

In recent years, the money market is undergoing structural changes in India. Many steps have been taken to transform the restricted and narrow market to an active and broad market. There has been a process of integration of the unorganised with the organised sector. All attempts are being taken to promote the bill culture and development of Money Market Mutual Funds (MMMF). In view of these recent developments, the money market in India can no longer be called an underdeveloped one.

Conclusion

A Project by United Boys…

Professor-in-chargeProf. Meghna Menon

SYBBI (Banking & Insurance)[Semester III]

THANK YOU!!!

Is Indian Money Market is really going on the way of 1991?