- 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.
- The call money is the most important segment of the Indian financial system.
- Call money allows banks to earn interest, known as the call loan rate, on their surplus funds.
- It consists of overnight money and money at short notice for a period of upto 14 days.
- The call money market essentially serves the purpose of equilibrating the short-term liquidity position of banks and other participants.
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