Marginal Cost of Funds based Lending Rate (MCLR): An internal benchmark rate for determining the interest rate on all floating rate rupee loans2 . It was introduced on April 1, 2016 after replacing the base rate system. MCLR comprises of marginal costs of funds (92% share of Marginal Cost of Deposits and Other Borrowings + 8% share of return on net worth)3 + negative carry on account of CRR + operating costs + tenor premium

Weighted Average Lending Rate (WALR): The weighted average of the lending rates of all SCBs (excluding RRBs, payment banks and small finance banks) on the outstanding rupee loans and fresh rupee loans sanctioned by the banks. It is based on lending rates to different sectors with weights based on credit extended to different sectors

Money Market: Market for lending and borrowing of short-term funds which are highly liquid. It covers money and financial assets that are close substitutes for money including call money, repo, Tri-party repo, T-bills, cash management bills, commercial paper and certificate of deposit

Call Money Market:  Instrument: Overnight money and money at short notice (up to a period of 14 days) is lent and borrowed without collateral. Call money is liquid and can be turned into money quickly at low cost and provides an avenue for equilibrating the short-term surplus funds of lenders and the requirements of borrowers  Borrowers: Scheduled commercial banks (excluding RRBs), co-operative banks (other than land development banks), and Primary Dealers (PDs)  Lenders: same as borrowers

Market Repo:  Instruments: Repurchase agreement (Repo) which is used for borrowing funds by selling securities with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed. Government securities, CPs, CDs, Units of Debt ETFs, listed corporate bonds and debentures are eligible securities for repo. Repo against corporate bonds are called repo in corporate bond  Participants: Banks, PDs, mutual funds, listed corporates, All India Financial Institutions, any other entity approved by the RBI

Tri-Party Repo Market:  Instrument: Tri-party repo, a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction  Participants Scheduled commercial banks, recognized stock exchanges and clearing corporations of stock exchanges or clearing corporations authorized under PSS Act and any other entity regulated by RBI or SEBI are eligible subject to certain criterion. All the repo market eligible entities are permitted to participate in Tri-party repo market

Treasury Bills Market:  Instrument: Short-term debt instruments issued by the GOI and sold by RBI on an auction basis. Treasury bills are zero coupon securities that pay no interest, issued at a discount and redeemed at the face value at maturity. They are currently issued in three tenors, namely, 91 days, 182 days and 364 days. They are also traded in the secondary market Investors: Any person resident of India, including firms, companies, corporate bodies, institutions and trusts along with non-resident Indians and foreign investors (subject to approval by Government) can invest through a competitive route

Certificate of Deposits Market:  Instrument: A negotiable money market instrument issued in dematerialized form or as a usance promissory note against funds deposited at a bank or other eligible financial institution for a specified time period. Maturity ranges from 7 days to 3 years. CDs can be traded in the secondary market  Issuers: Banks and Financial Institutions  Investors: Individuals, corporations, companies (including banks and PDs), trusts, funds, associations and non-resident Indians (but only on non-repatriable basis)

Commercial Paper Market:  Instrument: An unsecured money market instrument issued in the form of a promissory note. They are issued for the maturities between a minimum of 7 days and a maximum of up to 1 year from the date of issue (given that the credit rating of the issuer is valid in the period). CPs can be traded in the secondary market  Issuers: Corporates, PDs and All India Financial Institutions (FIs)  Investors: Individuals, banks, other corporate bodies (registered and incorporated in India), non-resident Indians,

Bond Market:  Instrument: A debt instrument whereby an investor loans money to an entity (typically corporate or government) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money to finance a variety of projects and activities  Issuers: Government or Corporates  Investors: Banks, mutual funds, foreign institutional investors, provident funds, pension funds

Government Securities Market:  Instrument: A tradable instrument issued by the Central or the State Governments. It acknowledges the Government’s debt obligation. Securities issued by State Governments in India are known as State Development Loan (SDL). The short-term G-Secs (Treasury Bills) have original maturities of less than 1 year while long-term G-Secs (Government Bonds or dated securities) have original maturity of 1 year or more. There is an active secondary market in G-Secs  Participants: commercial banks, PDs, institutional investors like insurance companies, other banks including cooperative banks, regional rural banks, mutual funds, provident and pension funds, foreign portfolio investors (allowed with quantitative limits prescribed from time to time), and Corporates

Corporate Bond Market:  Instrument: Debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business. The stock exchanges have a dedicated debt segment in their trading platforms to facilitate the needs of retail investors. A corporate bond is generally priced on the basis of price of G-sec of comparable tenure with a spread added to it. They are also traded in secondary market  Participants: Corporates, banks, retail investors and institutional investors including insurance companies and mutual funds, foreign investors