Friday, 1 August 2014

Discount and Finance House of India (DFHI)

DFHI is the apex body in the Indian money market.

It was set up in 1988 by RBI jointly with public sector banks and all India institutions to develop money market and to provide liquidity to money market. 

Its establishment is a major step towards developing a secondary market for money instruments.

The objective is to ensure that short-term surplus and deficits of these institutions are equilibrated at market-re­lated rates through inter-bank transactions and various money market instruments.

DFHI deals in the following instruments/products:
  1. Treasury Bills
  2. Dated Government Securities
  3. Certificates of Deposit
  4. Commercial Papers
  5. Call (overnight) Money
  6. Notice Money
  7. Term Money
  8. Derivative Usance Promissory Notes of Commercial Banks
  9. Interest Rate Swaps/Forward Rate Agreements. 

BranchesDFHI opened its branches at Ahmedabad, Bangalore, Calcutta, Chennai, New Delhi and very recently at Hyderabad with a view to catering to the requirements of the small and medium sized institutions operating at these centres and at the same time integrating the markets at these regional centres with main money market at Mumbai.

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