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Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021

RBI/2021-22/61
FMRD.DIRD.06/14.01.001/2021-22

June 25, 2021

To

All Eligible Market Participants

Madam / Sir

Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021

Please refer to the Master Direction – Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021 dated April 01, 2021 (hereinafter referred as ‘Master Directions’).

2. On a review based on representations received, the prudential borrowing limits for transactions in Call, Notice and Term Money Markets have been revised. Accordingly, in Part 4 (b) of the Master Directions, Table 1 is being revised as under:

Table 1: Prudential limits for outstanding borrowing transactions in Call, Notice and Term Money Markets
Sr. No. Participant Category Prudential Limit
1 Scheduled Commercial Banks (including Small Finance Banks) Call and Notice Money:

(i) 100% of capital funds, on a daily average basis in a reporting fortnight, and

(ii) 125% of capital funds on any given day.

Term Money:

(i) Internal board approved limit within the prudential limits for inter-bank liabilities.
2 Payment Banks and Regional Rural Banks Call, Notice and Term Money:

(i) 100% of capital funds, on a daily average basis in a reporting fortnight, and

(ii) 125% of capital funds on any given day.
3 Co-operative Banks Call, Notice and Term Money:

(i) 2.0% of aggregate deposits as at the end of the previous financial year.
4 Primary Dealers Call and Notice Money:

(i) 225% of Net Owned Fund (NOF) as at the end of the previous financial year on a daily average basis in a reporting fortnight.

Term Money:

(i) 225% of Net Owned Fund (NOF) as at the end of the previous financial year.

3. These Directions have been issued by RBI in exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf.

4. These changes shall be applicable with immediate effect.

Yours faithfully,

(Dimple Bhandia)
Chief General Manager


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