The CCIL is the clearing agency for Government securities.In effect, during settlement, the CCP becomes the seller to the buyer and buyer to the seller of the actual transaction.

OMO’s conducted by the RBI by way of sale/ purchase of Government securities to/ from the market.When the RBI feels there is excess liquidity in the market, it resorts to sale of securities thereby sucking out the rupee liquidity. Similarly, when the liquidity conditions are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

During the Shut period there will be no settlements/ delivery of the security. The main purpose of having a shut period is to avoid any change in ownership of securities during the process.

Government Securities include Treasury Bills, Cash Management Bills(CMBs), Dated Government Securities,Savings Bonds, National Saving Certificates (NSCs)etc.,

Asset Reconstruction Company (India) Limited (Arcil) is India’s first and largest asset reconstruction company, head quartered in Mumbai. ARCIL, was set up under SARFAESI Act, 2002.It is sponsored by State Bank of India (SBI), IDBI Bank Limited (IDBI), ICICI Bank Limited (ICICI) and Punjab National Bank (PNB).

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (also known as the Sarfaesi Act) allows banks and other financial institution to auction residential or commercial properties to recover loans. The first asset reconstruction company (ARC) of India, ARCIL, was set up under this act.

In money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day, is referred to as “notice money.”

Term money refers to borrowing and lending of funds for a period of more than 14 days.

There are two methods of Credit Control by RBI are quantitative(or general) methods and qualitative(Or Selective) methods. Quantitative measure includes Bank rate, Open Market Operations, CRR and SLR.

There are two methods of Credit Control by RBI are quantitative(or general) methods and qualitative(Or Selective) methods. Qualitative measure includes Margin requirements, Moral Suasion, Rationing of credit and Consumer credit Regulation.