The Reserve Bank of India has updated the prudential borrowing limits for transactions in the Call, Notice, and Term Money Markets. These revisions, effective immediately, apply to various market participants including Scheduled Commercial Banks, Payment Banks, Regional Rural Banks, Co-operative Banks, and Primary Dealers. The updated limits are detailed in a revised Table 1 within the Master Directions.
Reserve Bank Of India
RBI/2021-22/61
FMRD.DIRD.06/14.01.001/2021-22
June 25, 2021
To
All Eligible Market Participants
Madam / Sir
Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021
Please refer to the Master Direction Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021 dated April 01, 2021 (hereinafter referred as Master Directions).
2. On a review based on representations received, the prudential borrowing limits for t
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FAQ :
The Reserve Bank of India has revised the prudential borrowing limits for transactions in the Call, Notice, and Term Money Markets.
The revised limits apply to Scheduled Commercial Banks (including Small Finance Banks), Payment Banks, Regional Rural Banks, Co-operative Banks, and Primary Dealers.
These changes are applicable with immediate effect.
The revised prudential limits are detailed in Table 1 of Part 4 (b) of the Master Direction – Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021.
Scheduled Commercial Banks can borrow up to 100% of their capital funds on a daily average basis in a reporting fortnight, and up to 125% on any given day.
Co-operative Banks have a prudential limit of 2.0% of their aggregate deposits as at the end of the previous financial year.
Source : https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12120&Mode=0