Indian Money Market — Features and recent trends

A company that needs cash for just ninety days to pay its suppliers does not go to a stock exchange — it goes somewhere far less visible: the money market. This is the part of the financial system built entirely for short-term borrowing and lending, and understanding its structure is what lets you tell it apart from the capital market covered in the very next topic.

In two minutes

The Indian money market is the market for short-term funds — borrowing and lending for periods up to one year — organised through the call money market, treasury bills, commercial paper, certificates of deposit and the banking system, with the Reserve Bank of India at its centre.

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