INDIAN MONEY MARKET

The Money Market is a market for

lending and borrowing of short-term
funds. It deals in funds and financial
instruments having a maturity period of
one day to one year. It covers money and
financial assets that are close substitutes
for money. The instruments in the money
market are of short term nature and
highly liquid.
Structure (OR) Components Of
Indian Money Market

STRUCTURE OF
INDIAN MONEY
MARKET

ORGANISED UNORGANISED
SECTOR SECTOR
ORGANISED SECTOR
1) Call and Notice Money Market
2) Treasury Bills Market
3) Commercial Bills Market
4) Market for Certificates of Deposits (CDs)
5) Market for Commercial Papers (CPs)
6) Repos Market
7) Money Market Mutual Funds (MMMFs)
8) Discount & Finance House of India
(DFHI)
 UNORGANISED SECTOR

1. Indigenous Bankers
2. Money Lenders
3. Unregulated Non-Bank Financial
Intermediaries
4. Finance Brokers
Defects Of Money Market In India

 Existence of Unorganized Money

Market
 Lack of Integration

 Multiplicity in Interest Rates

 Inadequate Funds

 Seasonal Stringency of Money

 Inadequate Credit Instruments

Reforms Undertaken In Indian
Money Market
 Deregulation of Interest Rates
 Introduction of New Money Market
Instruments
 Repurchase Agreements (Repos)
 Liquidity Adjustment Facility (LAF)
 Money Market Mutual Funds (MMMF)
 Discount and Finance House of India (DFHI)
 Regulation of NBFCs
THANKYOU