2.  The Money Market is a short term market that
deals with different money market Instruments.
 Money market Instruments:
 Treasury Bills
 Commercial Papers
 Certificate of Deposit
 Call Money
 Commercial bills

3.  One type of safest money market Instruments, are short term borrowing
Instruments of the central government of India.
 T-bills are short term instruments issued by RBI on behalf of the
Government of India.
 TYPES:-
At present, the Government of India issues three types of treasury bills
through auctions, namely, 91-day, 182-day and 364-day. There are no
treasury bills issued by State Governments
Auctioned T-bills( April, 1992):-
91-day T-bills are auctioned every week on Wednesdays, 182-day and
364-day T-bills are auctioned every alternate week on Wednesdays.
 AMOUNT :
 Treasury bills are available for a minimum amount of Rs.25,000 and in
multiples of Rs. 25,000.

4.  Commercial Paper (CP) is an unsecured money market instrument
issued in the form of a promissory note.
 It was introduced in India 1990
 it has become the popular debt instrument of the corporate word.
 Issued at a discounted to face value basis.
 Corporate, primary dealers (PDs) and the All-India Financial
Institutions (FIs) are eligible to issue CP.
CPs are issued in the denomination of Rs 5 lakhs And the multiples
of Rs 5 lakhs.
 Advantage:
 simplicity – less doc. Between issuer and investor.
 CP provides investors with returns then they could get from the
banking system.
 Disadvantage:
 Its usage is limited to only blue-chip companies.

6.  Introduced by the RBI.
 Issued by the commercial bank and co-operative bank.
( 3 month – 1 year)
 subscribed by an individual as well as by an
institution.
 No advance can be taken against the security of the
CDs.
 No limit for investment in CDS by the banks.

7.  Commercial bills arise in trade transaction .
When goods are sold credit, the seller of
goods writes a bill of exchange and the
buyer of goods accepts the same.
 When the trade bills are accepted by the
banks, they are called as commercial bills.
 The maturity of 60-90 days depending on
the credit period prevailing in an industry.