Mumbai, Aug. 6 -- Corporates are increasingly relying on the bond market to raise funds as the transmission of policy rate cuts is faster in the money market compared to banks, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday while announcing the policy rates.

He said that this trend has become more visible as large companies are now choosing to raise money through market-based instruments such as commercial papers and corporate bonds, rather than depending mainly on bank credit.

Governor stated "As transmission to money markets has been faster, large corporates increasingly relied on market-based instruments such as commercial paper and corporate bonds to source funds".

According to the RBI data, bank credit grew...