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-

Features
Call and Notice Money- The period ran es from

overni ht to a fortni ht. Call money is repayable on the immediate ne!t workin day" notice money is repayable within a fortni ht.
These transactions are not covered by any collateral

security.
Call loans are repayable on demand at the option of the

borrower or lender at a very short notice.

#t makes call loans very li$uid" ne!t only to cash.

Call money market is the most sensitive se ment of the

financial system. Any chan e in demand and supply of short term funds in the financial system is $uickly reflected in call money market.

Benefits
%uick &unds- #t offers easy and $uick borrowin to meet

the li$uidity re$uirements.

'est #nvestment- This facilitates effective and profitable

investment of temporary surplus funds.

(rofitability- 'anks invest their surplus funds in a period

when call rates are hi h. )o" that they can ma!imi*e their profits.