Mumbai, June 25 -- The Reserve Bank of India (RBI) on Thursday proposed allowing a wider set of market participants, including non-banking financial companies (NBFCs), housing finance companies (HFCs), All India Financial Institutions (AIFIs) and companies, to access the term money market, which currently remains largely restricted to banks and standalone primary dealers.

This move is aimed at deepening liquidity and strengthening the transmission of monetary policy across different interest-rate tenors, the central bank said in a release.

RBI has invited comments from stakeholders and market participants on the draft directions by 25 July.

At present, only banks and standalone primary dealers are permitted to participate in the term m...