Participant – Komal Choursia

Deepak Lande
Mugdha Bibikar
Mani Kumar
 Call Money are overnight funds in banking system, which are
generally borrowed or advanced for not more than one day.

 It is used to meet short term liquidity by the banks.

 No collateral is being offered in Call Money Market.

 Helps Banks and institutions to even out their day to day deficits and surplus
of funds.
 Commercial banks and cooperatives are allowed to borrow as well lend in call
money market.
 Specified all India Financial institutions, Mutual funds and certain specified
companies such as insurance companies are allowed only as lenders.
 Non-bank entities such as corporates are not allowed to operate in call money
market.
 Call Rates

Inter Bank Lending Rate

Call Rate Of DFHI
 Interest rates are negotiated between the parties.

 No broker is permitted to deal in call money market.

 Transaction routed through current account of the parties with RBI.

Indian and Foreign Commercial bank
Co-operative Bank
DFHI (Discount and finance house of India)
STCI (securities Trading corporation of India)

UTI
LIC
NABARD
Temporary Mismatch In Funds
TO meet CRR & SLR
TO Meet unexpected Demand for Fund Due to large
outflow
Call loans are availed through Auctions and
Negotiation on Call Rates. The highest
bidder gets the loan. Electronics trading
Platform called Negotiated Trading
Platform (NDS), Deals with call money.
 Over-the-telephone market.

the borrowers After the deal is When the loan

and lenders over, lender is repaid with
Borrowers &
arrive at a deal issues FBL interest, the
Lenders contact
specifying the cheque, lender returns
each other over
amount of loan borrower issues the lender the
phone.
and the rate of call money duly discharges
interest. market receipt. receipt.
 Involving DFHI:

REVERSAL:
DFHI issues a call lender surrenders the
Borrowers and lenders duly discharged call
deposit receipt to the
inform the DFHI about deposit receipt and the
lender and in turn
their fund requirement borrower in turn issues a
receives a RBI cheque for
and availability RBI cheque for the
the money borrowed.
amount borrowed with
interest.
 HIGH LIQUIDITY

 HIGH PROFITABILITY

 MAINTAINENCE OF SLR

 SAFE AND CHEAP

 ASSISTANCE TO CENTRAL BANK OPERATIONS

 UNEVEN DEVELOPMENT

 LACK OF INTEGRATION

 VOLTALITY IN CALL MONEY RATES.

Thank you