Money Market Instruments

This paper examines the Indian money market, focusing on its key instruments, participants, and challenges. While the money market plays a crucial role in short-term borrowing and lending, issues such as fund shortages, an unregulated sector, and technological delays hinder its efficiency. Using secondary data and primary survey results, the study explores the market’s liquidity, investor behavior, and perceptions. The findings highlight the need for reforms to improve market accessibility, reduce interest rate disparities, and enhance regulatory oversight. The paper concludes with recommendations to strengthen the money market, particularly through government intervention and technological advancements.