The Reserve Bank of India has released draft directions for the call, notice and term money markets, opening a consultation on a new Master Direction for these segments. The draft is aimed at deepening the term money market by expanding the participant base and increasing borrowing limits for standalone primary dealers. The measure follows the announcement in the Statement on Developmental and Regulatory Policies of April 08, 2026. According to the Reserve Bank of India, a more active term money market provides an alternative funding avenue for participants and strengthens monetary policy transmission by linking the overnight money market with longer-term interest rates. Comments on the draft Directions are invited until July 17, 2026.
Reserve Bank of India2026-06-25
Reserve Bank of India launches consultation on draft money market directions to expand participation and raise standalone primary dealer borrowing limits
The Reserve Bank of India has issued draft directions for the call, notice and term money markets and is consulting on a new Master Direction for the segment. The proposal is intended to deepen the term money market by expanding participation and raising borrowing limits for standalone primary dealers. Comments are due by July 17, 2026.