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Treasury Bills
https://www.5paisa.com/stock-market-guide/generic/treasury-bills

https://scripbox.com/pf/treasury-bills/

What is a CommerCial PaPer?

httPs://WWW.5Paisa.Com/stoCk-market-guide/generiC/What-is-CommreCial-PaPer

What is a Certificate of Deposit?

https://www.indiainfoline.com/knowledge-center/financial-
planning/about-certificate-of-deposit-india
What is Call Money (Term Money) & How Does it Work?
https://www.smallcase.com/learn/call-
money/#:~:text=The%20participants%20in%20the%20call,on%20a%20short%2Dterm%20basis.

Recent developments in indian money market

https://theintactone.com/2019/10/20/fmi-u2-
topic-2-recent-development-in-indian-money-
market/
Inter-Bank Participation Certificates (IBPCs):
IBPC is yet another short-term money market instrument whereby the
banks can raise money/deploy short-term surplus. In the case of IBPC
the borrowing bank passes/sells on the loans and credit that it has in
its book, for a temporary period, to the lending bank.

IBPCs are of two types:

They are:
(i) With risk sharing,

(ii) Without risk sharing, and

Only Scheduled Commercial Banks can issue IBPCs.

The various features of this instrument are given below:

a. The minimum period shall be 91 days and maximum period 180
days in the case of IBPCs on risk sharing basis and in the case of IBPCs
under non-risk sharing basis the total period is limited to 90 days.
b. The maximum participation in loan/cash credit under IBPC would
be 40% of the amount outstanding or the limit sanctioned whichever
is lower. The participation however, should be in “standard asset”
only.

c. Documents to be executed by the borrower in favour of the Issuing

Bank shall provide a clause that the issuing bank shall have liberty to
shift at its discretion without notice to the borrower, from time to time
during the subsistence of the cash credit/loan account, a part or
portion of the outstanding in the said account, to another bank/bank’s
participating in the scheme.

d. Interest rates are determined between issuing bank and the

participating bank.

e. The issuing bank and the participating bank have to enter into
participation contracts in the format prescribed.

f. IBPCs are not transferable.

g. IBPCs cannot be redeemed before due date.

h. In case the balance in the cash credit/loan account on which IBPCs

have been issued comes down, at any point of time, the issuing bank
has to repay the portion of the IBPCs issued to the participating bank
so that the participation is not more than 40% of the balance
outstanding in the said account/s.
i. On the date of maturity the issuing Bank makes payment of the IBPC
along with agreed rate of interest to the participating bank except in
the case where risk has materialised where the issuing bank in
consultation with the participating bank may share the recoveries
proportionately.

In the case of non-risk sharing IBPCs the issuing bank will pay the
amount of the participating bank irrespective of defaults, if any, in
advance in question.