The RBI has proposed widening participation in India’s term money market by allowing eligible NBFCs, mortgage lenders, companies and financial institutions to lend and borrow short-term funds. The move aims to deepen money markets, improve liquidity access and broaden participation, while imposing prudential exposure limits on eligible non-bank finance firms.

RBI proposes broader access to India's money markets, allowing shadow lenders and companies to enhance liquidity and participation.

The RBI has proposed widening participation in India’s term money market by allowing eligible NBFCs, mortgage lenders, companies and financial institutions to lend and borrow…