Money Market and Capital Market in India

India's financial system is composed of the Money Market and the Capital Market. The Money Market deals with short-term borrowing and lending, with maturities ranging from a day to a year. It is regulated by the Reserve Bank of India (RBI) and includes instruments like Treasury Bills, Commercial Papers, and Certificates of Deposit. It provides liquidity to the financial system. The Capital Market, on the other hand, is for long-term funds (more than a year). It includes the stock market (for equities) and the bond market (for debt), and is regulated by the Securities and Exchange Board of India (SEBI). It mobilizes savings and channels them into productive investments.