{"id":92135,"date":"2025-06-01T11:15:35","date_gmt":"2025-06-01T11:15:35","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92135"},"modified":"2025-06-01T11:15:35","modified_gmt":"2025-06-01T11:15:35","slug":"with-reference-to-the-indian-economy-collateral-borrowing-and-lendin","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-collateral-borrowing-and-lendin\/","title":{"rendered":"With reference to the Indian economy, “Collateral Borrowing and Lendin"},"content":{"rendered":"

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of :<\/p>\n

[amp_mcq option1=”Bond market” option2=”Forex market” option3=”Money market” option4=”Stock market” correct=”option3″]<\/p>\n

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This question was previously asked in<\/div>\n
UPSC IAS – 2024<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nCollateral Borrowing and Lending Obligations (CBLO) were money market instruments introduced by the Clearing Corporation of India Ltd (CCIL) in 2003. CBLO represented an obligation by a borrower to return the borrowed funds at a specified future date and an obligation by a lender to return equivalent securities deposited as collateral by the borrower. It allowed market participants (like banks, financial institutions, mutual funds) to borrow and lend funds for short durations (typically overnight) against eligible securities held in electronic form. This function places CBLO firmly within the domain of the money market, which deals with short-term debt instruments.
\n<\/section>\n
\nCBLO was a short-term borrowing and lending instrument used in the Indian financial market with eligible securities as collateral.
\n<\/section>\n
\nCBLO was a significant instrument in the Indian money market for cash management and meeting reserve requirements until it was discontinued and replaced by the Tri-Party Repo (TREPS) system facilitated by CCIL in 2018-2019. TREPS serves a similar function as CBLO but with an added third party (CCIL or another clearing house) guaranteeing the settlement.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of : [amp_mcq option1=”Bond market” option2=”Forex market” option3=”Money market” option4=”Stock market” correct=”option3″] This question was previously asked in UPSC IAS – 2024 Download PDFAttempt Online Collateral Borrowing and Lending Obligations (CBLO) were money market instruments introduced by the Clearing Corporation of … <\/p>\n

Detailed SolutionWith reference to the Indian economy, “Collateral Borrowing and Lendin<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1103,1120,1190],"class_list":["post-92135","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1103","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nWith reference to the Indian economy, "Collateral Borrowing and Lendin<\/title>\n<meta name=\"description\" content=\"Collateral Borrowing and Lending Obligations (CBLO) were money market instruments introduced by the Clearing Corporation of India Ltd (CCIL) in 2003. CBLO represented an obligation by a borrower to return the borrowed funds at a specified future date and an obligation by a lender to return equivalent securities deposited as collateral by the borrower. It allowed market participants (like banks, financial institutions, mutual funds) to borrow and lend funds for short durations (typically overnight) against eligible securities held in electronic form. This function places CBLO firmly within the domain of the money market, which deals with short-term debt instruments. 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CBLO represented an obligation by a borrower to return the borrowed funds at a specified future date and an obligation by a lender to return equivalent securities deposited as collateral by the borrower. It allowed market participants (like banks, financial institutions, mutual funds) to borrow and lend funds for short durations (typically overnight) against eligible securities held in electronic form. This function places CBLO firmly within the domain of the money market, which deals with short-term debt instruments. 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