On June 25, 2021, the Reserve Bank of India (RBI) has issued the RBI (Call, notice, and term money markets) Directions, 2021.
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.
