RBI opens term money market to AIFIs, housing finance companies

RBI has opened the term money market to All India Financial Institutions such as EXIM Bank, NABARD, NHB, SIDBI, and NaBFID, allowing them to participate as both borrowers and lenders. Housing finance companies, excluding base level NBFCs, can borrow up to 200 percent of net owned funds, while borrowing limits for standalone primary dealers have been raised to 400 percent of NOF from 225 percent earlier. The central bank has invited stakeholder comments on the draft by July 17, with the policy aimed at deepening liquidity and improving monetary policy transmission in the term money market segment.