Certificate of Deposit in money market
Certificate of Deposit (CD) is a money market negotiable instrument equivalent to a usance promissory note. Banks and eligible financial institution issue certificate of deposits (CDs) to raise short-term resources within the umbrella limits fixed by the Reserve Bank. Scheduled banks can issue CDs for a period of 7 days to one a year whereas…
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CBLO dealing system in Money Market
Besides overnight call money and repo market, there is another market called collateralized borrowing and lending obligation (CBLO). The CBLO is a tradable repo, available in the form of discounted instrument in electronic book entry form. There are some difference in repo trading and CBLO trading. In repo trading, it is obligatory on the part…
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What is yield based and price based auction of Government securities
[This article explains the meaning of yield based and price based auction with the illustrations of yield based auction and auction Sale (Re-issue) of Government Securities] The Government securities are issued by way of auctions conducted by the RBI on the electronic platform called the NDS – Auction platform. The banks, Insurance Companies, Mutual Funds,…
Read articleSBBJ, SBH, SBM, SBP and SBT branches to operate as branches of SBI from April 1, 2017
In its press release today RBI notified that all branches of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT) will function as branches of State Bank of India from April 1, 2017. The order dated…
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Features of Bharat QR code based payments
What is QR code? QR code stands acronym for Quick Response code made up of black and white squares. These two-dimensional codes can be read by the camera of a smartphone and they are used for storing URLs and other information. What is the Bharat QR code? The Bharat QR code is low cost, interoperable…
Issuance and Operations of Prepaid Payment Instruments
In terms of the latest amendment to master circular of RBI, the Banks which extend the Prepaid Payment Instruments facility the other entities / ‘employers’ such as unlisted corporates /partnership firms / sole proprietorship / public organizations like municipal corporations, urban local bodies, etc. The above-mentioned employers utilize prepaid payment instruments for onward issuance to…
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