ABSTRACT

Paper Title/ Authors Name Download View
Money Market in India

Dr. K. B. Laghane Mr. Vijay B. Tupe

INTRODUCTION
Money Market is a very important segment of a financial system. It is the market for
dealing in monetary asset of short-term nature. Short-term funds up to one year and financial assets that
are close substitutes for money are dealt in the Money Market. Money Market instruments have the
characteristics of liquidity (quick conversion into money),minimum transaction cost and no loss in value.
Excess funds are deployed in the Money Market, which in turn is availed of to meet temporary shortages
of cash and other obligations. Money Market provides access to providers and users of short-term funds to
fulfill their investments and borrowings requirements respectively at an efficient market clearing price. It
performs the crucial role of providing an equilibrating mechanism to even out short-term liquidity,
surpluses and deficits and in the process, facilitates the conduct of monetary policy. The Money Market is
one of the primary mechanism through which the Central Bank (RBI) influences liquidity and the general
level of interest rates in an economy. The Bank’s interventions to influence liquidity