With a view to dealing with the shortcomings in the money market, the Clearing Corporation of India Ltd. (CCIL), came up with an instrument, viz., Collateralized Borrowing and Lending Obligation commonly known as CBLO, CBLO is an obligation by the borrower to return the money borrowed, at a specified future date, an authority to the lender to receive the money lent, at a specified future date with an option/ privilege to transfer the authority to another person for value received. This article briefly deals with the need and nature of the Indian Money Market, the various instruments that are frequently traded in the market, CBLO and the regulation thereof by the RBI. Introduction As the economy of a country develops its financial market expands and gets diversified. A robust financial market is an amalgamation of strong capital, debt and money markets. A growing economy mandates that all the three markets develop at an equal footing as the various ....