Treasury Bills (T-Bills), Commercial Papers (CP), and Certificates of Deposit (CD) are all "Zero Coupon" instruments. They do not pay periodic interest; instead, they are issued at a discount to their face value, and the profit is the difference between the redemption value and the issue price.

"Call Money" refers to lending/borrowing for 1 day (overnight). "Notice Money" refers to lending/borrowing for a period of 2 to 14 days. "Term Money" is for 15 days to 1 year.

CP is an unsecured Promissory Note issued by corporates, primary dealers, and FIs to raise short-term funds.

TREPS enables tri-party repo borrowing and lending, facilitated by a central counterparty (CCIL). It allows participants to borrow against government securities collateral with a third party mediating the transaction.

Currently, the Government of India issues Treasury Bills in three standard maturities: 91-day, 182-day, and 364-day. There is no standard 270-day T-Bill.

CD is a negotiable money market instrument issued by Scheduled Commercial Banks and select FIs. The minimum maturity for a CD issued by banks is 7 days, not 1 day. It is unsecured.

Banks and Primary Dealers act as both borrowers and lenders in the Call/Notice money market. Co-operative banks are also permitted. Corporates are not permitted.

Masala Bonds are debt instruments issued outside India but denominated in Indian Rupees rather than foreign currency. This shifts the currency risk from the issuer to the investor.

Unlike standard Repo where G-Secs are used, Corporate Bond Repo allows borrowing funds by pledging Corporate Bonds. This aims to deepen the corporate bond market.

While a trade bill acts as evidence of debt, it becomes a liquid money market instrument only when a commercial bank "Accepts" it, guaranteeing payment. It can then be discounted.

While RBI sets policy rates (Repo), the Call Money Rate is a market-determined rate based on the demand for and supply of overnight funds among banks.

The Call/Notice/Term Money market is classified by tenor: "Call Money" is for 1 day, "Notice Money" is for 2-14 days, and "Term Money" is for 15 days up to 1 year.

Commercial Papers can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.

In a Repo, the borrower sells securities to the lender with an agreement to repurchase them at a future date at a predetermined price. The securities act as collateral for the short-term loan.

Certificates of Deposit (CDs) can be issued in multiples of ?1 Lakh, subject to a minimum size of ?1 Lakh.

For T-Bills and G-Secs in India, the convention is Actual/365. This means interest/discount is calculated based on the actual number of days elapsed divided by a 365-day year.

TREPS replaced CBLO in 2018 to provide a more robust tri-party repo platform managed by CCIL.

Although legal title passes, the economic substance is a collateralized loan. Thus, the borrower continues to recognize the securities in their Balance Sheet and recognizes a liability for the repurchase price.

Under the revised monetary policy framework, the Bank Rate is aligned with the MSF Rate (usually 25 bps above the Repo Rate). They move in tandem.

E-Kuber is the Core Banking Solution (CBS) of the RBI. The auction of Government Securities and T-Bills is conducted on the E-Kuber platform.