CALL MONEY

1.Call money, also known as "money at call," is a short-term

financial loan that must be paid in full and immediately when B1 B2 No Securities
the lender demands it.

2.Call money allows banks to earn interest on their excess

funds, which is known as the call money rate (call loan rate/call
rate).

3.It consists of overnight money as well as money available on

Call Money Over Night(One Day)
short notice for up to 14 days. Notice Money 1-14 Days.
Term Money 15 Days- 1 Year
4.The call money market primarily serves to rebalance banks'
and other participants' short-term liquidity positions.

Features of Call Money Participants

Mainly banks
➢ A call money loan is a short-term, interest-bearing loan made by
one financial institution to another financial institution.
➢ Because of the loan's short term, it does not have regular Commercial SFB RRB CB
principal and interest payments, which longer-term loans may
SFB- Small Finance Banks.
have.
➢ The call loan rate is the interest rate charged on a call loan RRB-Regional Rural Banks.

between financial institutions. Co Operative- Banks

➢ The funds can be transferred quickly between lenders.