<h2 class="ql-align-justify">Standalone Primary Dealers (SPDs)</h2> Context: The RBI has recently allowed standalone primary dealers (SPDs) to borrow in foreign currency from their parent companies and entities authorized by it. Standalone primary dealers will also be allowed to access overdraft facilities in nostro accounts solely for operational use. About&nbsp;<ul><li class="ql-align-justify">A primary dealer is an RBI-registered entity that is authorized to buy and sell government securities.&nbsp;</li><li class="ql-align-justify">In 1995, RBI introduced the Primary Dealers (PDs) system in the Government Securities Market.</li><li class="ql-align-justify">There are 2 types of primary dealers in India:</li></ul><ol><li class="ql-align-justify">Standalone primary dealers&nbsp;</li><li class="ql-align-justify">Bank primary dealers.</li></ol><h3 class="ql-align-justify">Standalone Primary Dealer</h3><ul><li class="ql-indent-1 ql-align-justify">They are either subsidiaries of scheduled commercial banks or entities incorporated abroad or those incorporated under the Companies Act.</li><li class="ql-indent-1 ql-align-justify">Registered as non-banking financial companies (NBFCs).&nbsp;</li></ul><img src="https://sunyaias-resources.s3.ap-south-1.amazonaws.com/content/ee1ad780-37cb-11ef-aa44-776be579c942.png">