The RBI has published draft Master Directions aimed at enhancing liquidity in the money market, inviting stakeholder feedback until July 17, 2026. The proposed measures are expected to broaden market participation.
Draft Money Market Rules by RBI
The Reserve Bank of India (RBI) has unveiled draft Master Directions for Call, Notice, and Term Money Markets, with a focus on increasing liquidity and widening participation across the market. This initiative aims to facilitate smoother monetary policy transmission while strengthening the regulatory framework.
Stakeholders are encouraged to provide their comments on these drafts until July 17, 2026, highlighting the RBI's commitment to a consultative approach before finalizing the guidelines. The proposed directives seek to eliminate barriers for participation, thereby creating a more dynamic money market in India.
Practitioners in financial law should pay close attention to these developments, as the eventual enactment of these rules could significantly alter the operational landscape for both new entrants and existing participants in the money markets.