Feb. 9, 2021, 11:21 a.m.
This is not a tool of Monetary Policy. It helps Corporate to borrow money.
This is not a tool of Monetary Policy. It helps Corporate to borrow money.
In ordinary repo, there are two parties- borrower vs. lender (RBI).
Whereas, In Tri-party Repo, there are 3 parties:
1) borrowers
2) lenders
3) Tri-Party Agent (e.g. NSE or BSE) who, acts as an intermediary between the two parties to facilitate collateral custody, payment and guaranteed settlement.
2017: RBI issued guidelines → 2018: National Stock Exchange (NSE) started it, 2019: Bombay Stock Exchange (BSE) started it.