India's Central Bank Expands Money Market Access to NBFCs and Companies on June 26

According to the Reserve Bank of India's rules draft released on Thursday evening, June 26, the central bank proposed to expand participation in India's money market to include non-banking financial companies (NBFCs), including mortgage lenders, and corporations. Under current regulations, only banks and primary dealers can participate in the term money market under prudential limits. The proposed amendments would allow NBFCs to participate as both borrowers and lenders in term money market transactions, while corporations would be permitted to participate as lenders. Smaller NBFCs would be excluded from the new framework. The RBI noted that this reform was first mentioned in its monetary policy statement in April and is now open for public consultation.
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