The Reserve Bank of India (RBI), on June 24, 2026, released the draft Master Direction – Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2026 for public consultation. The draft directions have been issued pursuant to the announcement made in the Statement on Developmental and Regulatory Policies dated April 8, 2026, and comments from banks, market participants, and other stakeholders have been invited until July 17, 2026.
The draft Master Direction seeks to strengthen the term money market by enhancing its depth, liquidity, and efficiency. Key proposals include increasing the borrowing limits for Standalone Primary Dealers (SPDs) and expanding the participant base in the call, notice, and term money markets. The RBI stated that a more active term money market would provide an alternative funding avenue for market participants and improve monetary policy transmission by strengthening the linkage between overnight money markets and longer-term interest rates.
Stakeholders may submit their comments to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, or through email with the subject line "Feedback on draft Master Direction – Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2026" by July 17, 2026.
[Press Release: 2026-2027/545]
