However from the fiscal year 2006-07, as per the provisions under the Fiscal Responsibility and Budget Management (FRBM) Act 2003, the Reserve Bank's participation in the primary market for Central Government securities stands withdrawn. This has necessitated significant changes in the setting and operating framework of monetary, debt management and regulatory policies of the Reserve Bank.
One of the initiatives taken in this regard is broad basing of Primary Dealership system: Till last year, primary dealer activity was confined to Primary Dealer institutions. In order to broad base the activity, the structure of Primary Dealership business was expanded to include all Scheduled Commercial Banks (excluding RRBs), which fulfill certain minimum eligibility criteria.