RBI (Call, Notice and Term Money Markets) Directions, 2021
Reserve Bank of India (RBI) (Call, Notice and Term Money Markets) Directions, 2021-Review
Please refer to Paragraph 1 of the Statement on Developmental and Regulatory Policies, announced as a part of the Bi-monthly Monetary Policy Statement for 2023-24 dated June 08, 2023, regarding Borrowing in Call and Notice Money Markets by Scheduled Commercial Banks. Attention is also invited to the Master Direction – Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021 dated April 01, 2021, as amended from time to time (hereinafter referred as ‘Master Direction’).
2. On a review, it has been decided that henceforth, Scheduled Commercial Banks (excluding small finance banks and payment banks) may set their own limits for borrowing in Call and Notice Money Markets. As in the case of Term Money Market borrowing, Scheduled Commercial Banks shall put in place internal board approved limits for borrowing through Call and Notice Money Markets within the prudential limits for inter-bank liabilities prescribed by Department of Regulation.
3. The instruction shall be applicable with immediate effect. The Master Direction has been accordingly updated.
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