The Reserve Bank of India has opened the term money market to All India Financial Institutions and housing finance companies, allowing them to borrow and lend. Prudential borrowing limits for primary dealers have also been significantly increased. These moves aim to deepen market participation and improve liquidity, ultimately strengthening monetary policy transmission by linking short-term and long-term interest rates.

RBI allows banks to lend against foreign currency deposits to non-residents, aiming to boost dollar inflows. New rules include swaps, liens, and FCNR incentives.

The Reserve Bank of India (RBI) has proposed allowing All India Financial Institutions (AIFIs) and housing finance companies (HFCs) to borrow in the term money market, while also…

The Reserve Bank of India is proposing new guidelines to boost participation and liquidity in the term money market, allowing entities to set their own lending limits with board…