Banks, mutual funds earn abnormally high returns in money markets by breaching RBI rules

.....The trades have taken place as India considers forming a unified regulatory authority that would assume oversight of trading in currency, bond and derivatives markets from the central bank. The proposal does not address regulation of money markets, which is handled by the RBI. It was unclear whether the RBI is aware of the practices. A spokeswoman for the central bank declined to comment after being provided detailed verbal and emailed queries from Reuters...........

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