<P> Repo is an abbreviation for Repurchase agreement, which involves a simultaneous "sale and purchase" agreement . When banks have any shortage of funds, they can borrow it from Reserve Bank of India or from other banks . The rate at which the RBI lends money to commercial banks is called repo rate, a short term for repurchase agreement . A reduction in the repo rate will help banks to get money at a cheaper rate . When the repo rate increases borrowing from RBI becomes more expensive. (1). </P> <P> Money market mutual funds invest money in specifically, high - quality and very short maturity - based money market instruments . The RBI has approved the establishment of very few such funds in India . In 1997, only one MMMF was in operation, and that too with very small amount of capital . </P> <P> The influence of the Reserve Bank of India's power over the Indian money market is confined almost exclusively to the organised banking structure.It is also considered to be the biggest regulator in the markets . There are certain rates and data which are released at regular intervals which have a huge impact on all the financial markets in INDIA . The unorganised sector, which consists mostly of indigenous bankers and non-banking financial companies, although occupying an important position in the money market have not been properly integrated with the rest of the money market . </P> <P> The recommendations of the Sukhmoy Chakravarty Committee on the Review of the Working of the Monetary system, and the Narasimham Committee Report on the Working of the Financial System in India, 1991, The Reserve Bank of India has initiated a series of money market reforms basically directed towards the efficient discharge of its objectives . The bank reduced the ceiling rate on bank advances and on inter-bank call and short - notice money . There has been a significant lowering of the minimum lending rate of commercial banks and public sector development financial institutions from 18% in 1990--91 to 10.5% in 2005--06 . </P>

Who is the regulator of money market in india