The document discusses various money market instruments in India including Treasury Bills (T-bills), Commercial Papers (CPs), Certificates of Deposit (CDs), and Commercial Bills. T-Bills are short-term sovereign debt instruments issued in 91, 182, and 364 day maturities through weekly auctions. CPs are unsecured promissory notes issued by corporations since 1990. CDs are issued by commercial and cooperative banks with maturities between 3 months to 1 year. Commercial bills arise from trade transactions and have maturities of 60-90 days.

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.