All Eligible Market Participants
Payments Bank and Small Finance
Banks– access to Call/Notice/Term Money Market
A reference is invited to Master Direction No.2/2016-17, dated July 7, 2016 on
Money Market Instruments. A reference is also invited to the Guidelines for
Licensing of Payments Banks and Guidelines
for Licensing of Small Finance Banks in the Private Sector, dated November
2. It is clarified that Payments
Banks and Small Finance Banks are eligible to participate in the
Call/Notice/Term money market (hereafter referred to as Call money market)
both as borrowers and lenders. Such eligibility is valid even prior to the
completion of the process to get themselves included in the Second Schedule
of Reserve Bank of India Act, 1934.
3. The prudential limits and
other guidelines on Call money market for Payments Banks and Small Finance
Banks will be the same as those applicable to Scheduled Commercial Banks in
terms of the Master Direction referred above.
4. These Directions have been
issued by RBI in exercise of the powers conferred under section 45W of the
Reserve Bank of India Act, 1934 and of all the powers enabling it in this
5. These directions are
applicable with immediate effect.
(T. Rabi Sankar)
Chief General Manager