In a view of the various defects in the Indian money market, the following suggestions have been made for its proper development:
(i) The activities of the indigenous banks should be brought under the effective control of the Reserve Bank of India.
(ii) Hundies used in the money market should be standardised and written in the uniform manner in order to develop an all-India money market.
(iii) Banking facilities should be expanded especially in the unbanked and neglected areas.
ADVERTISEMENTS:
(iv) Discounting and rediscounting facilities should be expanded in a big way to develop the bill market in the country.
(v) For raising the efficiency of the money market, the number of the clearing houses in the country should be increased and their working improved.
(vi) Adequate and less costly remittance facilities should be provided to the businessmen to increase the mobility of capital.
(vii) Variations in the interest rates should be reduced.