What is Indian Money Market?

What is Indian Money Market?

The Indian money market is an essential element of India’s financial system, facilitating short-term borrowing and lending among financial institutions and individuals. Its primary function is to ensure efficient fund allocation and provide liquidity to participants, contributing to the smooth functioning of the economy. The Indian money market serves as a platform for liquidity management and price discovery....

What is Money Market?

A market or a segment of the financial market in which lending and borrowing of short-term funds take place is known as a Money Market. A money market primarily deals with highly liquid and low-risk instruments having maturity, usually with a range from overnight to one year. In a money market, the short-term surplus investible funds with the banks and other financial institutions are bid by borrowers. It plays a crucial role in facilitating efficient fund allocation. It also helps meet short-term fund requirements of different participants of an economy. The basic objectives of the Money Market include short-term financing, liquidity management, low-risk investments, benchmark interest rates, market stability and transparency, and monetary policy implementation....

Structure of the Indian Money Market

The Indian Money Market can be categorised into two sectors; viz., Organised or Modern Sector, and Unorganised or Indigenous Sector....

Characteristics of the Indian Money Market

Some of the key characteristics or features of the Indian Money Market are as follows:...

Defects of the Indian Money Market

...