As for other central banks, the money market is the focal point for intervention by the Reserve Bank to equilibrate short-term liquidity flows on account of its linkages with the foreign exchange market.
Similarly, the Government securities market is important for the entire debt market as it serves as a benchmark for pricing other debt market instruments, thereby aiding the monetary transmission process across the yield curve. The Reserve Bank had, in fact, been making efforts since 1986 to develop institutions and infrastructure for these markets to facilitate price discovery.