The 'Money Market' desk performs the following activities on the bank's account:
Management of Statutory Reserves viz. CRR & SLR
Individuals including NRIs have been granted permission by the Reserve Bank of India to invest in Treasury Bills ( T- Bills).
What are T- Bills?
T- Bills are short term money market instruments issued by RBI on behalf of the Govt. of India. Basically,
Sources of investment by NRIs into T-bills on a repatriable basis may be from:
RBI has permitted booking of forward contract against face value of T-bills on the maturity date. A finite yield is thus possible insulating the investor against exchange rate fluctuations. However, booking a forward contract is optional to the customer. The return offered by our bank is the sum of the yield on treasury bills and exchange gains, if any.
Booking of a forward contract against NRE deposits for delivery of foreign currency on maturity date – i.e.the swap scheme is another investment option for NRIs. The attractiveness of the scheme depends upon the forward premia and the prevailing interest rates on deposits.
These are sovereign coupon bearing instruments issued by the Government of India.
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