RBI Expands Term Money Market Access for AIFIs, Housing Finance
MUMBAI: The central bank has permitted All India Financial Institutions (AIFIs) and housing finance companies to borrow funds from the term money market, while also increasing the borrowing limits for standalone primary dealers, as per draft master directions released Thursday. AIFIs—including the Export-Import Bank (Exim), National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB), Small Industries Development Bank of India (SIDBI), and National Bank for Financing Infrastructure and Development (NaBFID)—can now participate as both borrowers and lenders in the term money market, according to the RBI. Housing Finance Companies (HFCs), excluding basic-level Non-Banking Financial Companies (NBFCs), will…