Important suggestions may be put forward for the improvements of Indian Money Market are given below:
- Regulation of Indigenous Banking:
- 2. Development of Bill Market:
- Standardisation of Hundies:
- Warehousing Facilities:
- Reorganisation and Increase in the Number of Clearing Houses:
- Expansion of Remittance Facilities:
What are the problems and reforms in Indian Money Market?
Deregulation of Interest Rates The important interest rates in India are-Bank rate, Medium-term lending rate, Prime Lending rate, Bank Deposit rate, Call rate, Certificate of Deposit rate, Commercial paper rate etc. This deregulation got a major push after the economic liberalisation of 1991.
Who controls money market in India?
The Reserve Bank derives statutory powers to regulate market segments from specific provisions of the Reserve Bank of India Act, 1934. The prudential guidelines issued to eligible market participants form the broad regulatory framework for Government securities, money market and interest rate derivatives.
What are the defects of the money market in India?
The orgnaised money market in India has number of sub-markets such as the treasury bills market, the commercial market and inter-bank call money market. 1. Existence of Un-organised Money Market: The most important defect of the Indian money market is the existence of unorganised segment.
Why are people not investing in stock market in India?
Indian investors often cite a lack of understanding, financial risk, or other reasons for not investing their money in the stock market. Other short-term investors enter stock trading to earn a “quick buck” – and also exit the market forever after a bad experience.
What are some of the problems in the Indian economy?
Although India has benefited from a high % of English speakers, (important for call centre industry) there is still high levels of illiteracy amongst the population. It is worse in rural areas and amongst women. Over 50% of Indian women are illiterate. This limits economic development and a more skilled workforce. 3. Poor Infrastructure
Are there any money market reforms in India?
These are major reforms undertaken in the money market in India. Apart from these, the stamp duty reforms, floating rate bonds, etc. are some other prominent reforms in the money market in India. Thus, we can conclude that the Indian money market is developing at a good speed.
