Role of the Reserve Bank of India for the Improvement of Money Market in the India

Abstract

Money Market is a section of the financial market where lending as well as borrowing of short-term
funds takes place. The development of money market instruments is from one day to one year. In
India, this market is regulated by both the Reserve Bank of India (RBI) and the Security and
Exchange Board of India (SEBI). The aim of this research paper is to discuss the role of the RBI to
improve and develop money market in India. The nature of transactions in this market is such that
they are large in amount and high in volume. Thus, we can say that the entire market is dominated by
a small number of large players. This research paper is based on literature review wherein secondary
data is collected from various source such as websites, newspaper, journals and different
publications.