The development of money market depends upon the availability of variety of instruments to suit the requirements of various borrowers and lenders. These are
* Money at call and short notice
* Treasury bills- 91 day,182days, 364 days
* Bills re discounting scheme
* Certificate of deposit
* Commercial paper
* Repos
* Inter bank participation certificates
* Securitized debt
There are certain money market instruments which are yet to inter Indian money market.These are
i) Options
ii) Financial futures
ii) Forward rate agreement
Among all the instruments operating in Indian money market the most commonly used instrument is money at call. The activity in call money market is generally confined to interbank business mostly on overnight basis. However the maximum period is 14 days. Large mutual funds promoted by banks can participate as lenders only. Certain lenders have been permitted through DFHI .
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