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Call Money Market

called “ Call Money Market”. at- call and short notice etc.

A market where calls funds are borrowed and lent is Call funds include very short period funds such as money-

These transactions are not covered by any collateral security. #t makes call loans very li$uid" ne!t only to cash.The period ran es from overni ht to a fortni ht.Features Call and Notice Money. Call money is repayable on the immediate ne!t workin day" notice money is repayable within a fortni ht. Call loans are repayable on demand at the option of the borrower or lender at a very short notice. .

Any chan e in demand and supply of short term funds in the financial system is $uickly reflected in call money market.Call money market is the most sensitive se ment of the financial system. .

'anks invest their surplus funds in a period when call rates are hi h.Benefits %uick &unds. . 'est #nvestment.This facilitates effective and profitable investment of temporary surplus funds.#t offers easy and $uick borrowin to meet the li$uidity re$uirements. (rofitability. )o" that they can ma!imi*e their profits.