Mumbai, March 16 -- Short-term borrowing costs in India's money markets have jumped, as companies trying to avoid locking in steep long-term rates rush to tap commercial papers (CP) and certificates of deposit (CD),

This surge in interest rates has come despite liquidity injections by the Reserve Bank of India (RBI), with seasonal tightness in March adding to the pressure, multiple treasury officials told Mint.

On Friday, the National Bank for Agriculture and Rural Development (Nabard) raised about Rs.6,000 crore through one-year CDs at 7.35%, around 25 basis points (bps) higher than interest rates seen a week ago.

"For a three-year paper, Nabard was willing to pay 7.50%, but the demand was at 7.60-7.70%, so they did not raise funds th...