Money Market Desk

    Money Market desk performs the following activities on the bank’s account:
    Management of Statutory Reserves viz. CRR & SLR
    • Funds Management
    • Balance Sheet Management  
    • Debt securities trading

Treasury Bills

    INVESTMENTS / TREASURY BILLS:
    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,
    1. They are Zero coupon bonds issued at a discount to face value  and redeemed at par on maturity date.
    2. No Tax is deducted at source
    3. Tenor: 91 / 364 days
    4. The return on T-bills is a function of time and the discount to face value.

    Sources of investment by NRIs into T-bills on a repatriable basis may be from:
    1. NRE A/c ( SB or FD)
    2. FCNR A/c
    3. Fresh Inward Remittance
    4. Instrument drawn by other banks from the above a/cs
    5. Matured forward contract

    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.

GOI Securities

    These are sovereign coupon bearing instruments issued by the Government of India.

    Advantages

    • Fixed half-yearly coupons paid on specific dates.
    • Tenor: Available in wide range of maturities from above one year (short-dated) to twenty years (long-dated).
    • Amount: Minimum Subscription Rs. 10000/- and then in multiples of Rs. 10000/-
    • Available in primary & secondary markets.
    • Highly liquid.
    • Available in physical as well as demat form (maintained in Constituent Subsidiary General Ledger (CSGL) a/c with any bank)


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MCX Stock Exchange Limited: INE261314434 for dealing in currency derivatives segment