"Collateral Borrowing and Lending Obligations" (CBLO) are instruments primarily used in the money market in India, facilitating short-term borrowing and lending among financial institutions. This mechanism allows institutions to borrow funds against collateral, thereby ensuring liquidity in the market while managing risk effectively. The CBLO framework, introduced by the Clearing Corporation of India, enhances the efficiency of the money market by promoting secure transactions, thus aiding in the smooth functioning of monetary policy and overall economic stability, which is essential knowledge for the UPSC Prelims GS Paper I.