RBI Proposes Expanded Term Money Market Access for NBFCs and AIFIs in Draft Directions
Under the proposed framework, Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), and All India Financial Institutions (AIFIs) are allowed broader entry into the term money market.
For NBFCs and HFCs (excluding base layer entities), a borrowing limit of 200% of their Net Owned Funds (NOF) has been set, while Standalone Primary Dealers (SPDs) face limits up to 400% of NOF for Term Money combined with Inter-Corporate Deposits.
The draft mandates that any transactions conducted outside the NDS-CALL platform must be reported within 15 minutes of execution. Non-members must join the NDS-CALL platform within six months of implementation.
This regulatory overhaul intends to enhance liquidity management and integrate non-bank entities deeper into India's short-to-medium-term money markets.
Key Facts / Static GK
Headquarters of RBI: Mumbai, Maharashtra
Term Money Market: Segment of money market where unsecured funds are lent/borrowed for a duration exceeding 14 days and up to 1 year
Practice Quiz — 27 June 2026
Q1. Consider the following statements regarding the RBI's draft Master Directions on Term Money Markets: 1. Non-Banking Financial Companies (excluding Base Layer NBFCs) have a maximum borrowing limit of 200% of their Net Owned Funds (NOF). 2. Standalone Primary Dealers (SPDs) can borrow up to 400% of their NOF in the Call & Notice Money Market. 3. Transactions executed outside the NDS-CALL platform must be reported within 15 minutes. Which of the statements given above are correct?
Q2. Which bank has partnered with the AI-driven fintech platform jUMPP as its Payment Service Provider (PSP) bank for its UPI operations?
Q3. The AI-powered trade and payments platform LEXI Money has received in-principle approval to operate as a Payment Service Provider from which regulatory body?
Q4. The Rajolibanda Diversion Scheme (RDS) is an interstate irrigation project built across which river?
Q5. Under which international regulatory framework does the World Health Organization (WHO) declare a Public Health Emergency of International Concern (PHEIC)?
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