The document summarizes the Indian money market. It describes the organized and unorganized sectors. The organized sector includes the call money market, bill market, certificates of deposit market, and commercial papers market. The call money market facilitates short-term loans between financial institutions. The bill market specializes in buying and selling commercial and treasury bills. Certificates of deposit are negotiable claims issued by banks in exchange for time deposits. Commercial papers are unsecured promissory notes used by corporations to raise short-term funds. The unorganized sector includes indigenous bankers like money lenders and chit funds that operate in rural areas not served by modern banks.

1. Indian Money Market
By
Gopal Kumar (13DM041)
IMIS,PGDM(2013-2015)

2. Money Market-Refers to the total financial institutions which
deal with short term loans in an economy within a year.
It is entirely different from capital market.

3. Indian Money Market Sector
Organised Sector
Unorganised
 Call Money Market
 Indigenous Bankers
 Bill Market
 Commercial Bill Market
 Treasury Bill Market
 Certificates of Deposit
Market
 Commercial Papers Market
 Money Lenders

4.  Call Money Market:Principle component of IMM.
Extremely short period loans.
Very short maturity overnight to
fourteen days loans.
 Purposes:Business purpose between two
individuals
To deal in Stock exchange & bullion markets
Inter-Bank borrowings
To provide greater liquidity

5.  Bill Market: Specializes in sale & purchase of commercial
bills & treasury bills.
 Features:Post Dated cheques
Short-term borrowings(Promissory notes)
Issued only by RBI
 Certificates of Deposit Market: Negotiated claim issued by
the Bank in return for a time deposit.

6.  Features: Most convenient instruments to the depositors.
Offer Maximum liquidity
Ideal requirement for Banks
 Commercial Papers Market: Short-term instrument for
raising fund by corporates.
 Features:Unsecured Promissory notes of short-term
maturity
Driven by the demand for CP by comm.Banks
Basically driven by the banks surplus fund
position.

7.  Indigenous Bankers: Generally found in rural areas which are
untouched with modern banking system.
It include: Chit funds,Private firms/Individuals
 Money Lenders: Mostly Confined to small town &
Villages
Caters to need of farmers, artisans &
Small Traders
Charge exorbitant interest rates

8. Thank You