RBI Propose Draft to Expand Money Market Access for NBFCs and Firms

The Reserve Bank of India (RBI) has proposed to broaden participation in the country’s money market to include non-banking financial companies (NBFCs), shadow lenders, and other financial institutions. This initiative aims to deepen funding markets and expand access to short-term liquidity.

Currently, only banks and standalone primary dealers are allowed to participate in India’s term money market under specific prudential limits.

The RBI’s draft proposals, issued on June 25, 2026, suggest that NBFCs, including mortgage providers, be permitted to trade in the term money markets as both borrowers and lenders.

However, smaller non-bank finance firms will be excluded from this participation.