What is call money in India?

  1. Call money is any type of short-term, interest-earning financial loan that the borrower has to pay back immediately whenever the lender demands it. 
  2. The call money is the most important segment of the Indian financial system.
  3. Call money allows banks to earn interest, known as the call loan rate, on their surplus funds.
  4. It consists of overnight money and money at short notice for a period of upto 14 days.
  5. The call money market essentially serves the purpose of equilibrating the short-term liquidity position of banks and other participants.

Further Readings –

  1. Indian Financial System
  2. Types of Money
  3. Monetary Policy
  4. Financial Market

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