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  • Call money market is a market for overnight lending and borrowing of funds.
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  • In call money market, institutions with surplus funds lend on an uncollaterised basis to institutions with shortage of funds.
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  • Rate at which lending and borrowing takes place is known as call rate.
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  • With effect from August 2005, non banks are not allowed to participate in call money market and for non banks to participate Collateralised Borrowing and Lending Obligation (CBLO) money market was created.
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Call Money Market snap shot


 
Call Money Market snap shot

 

  • Chart below shows month wise highest, average and lowest weighted average call rates for fiscal year 2014.
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Fiscal year 2014 monthly weighted average call rate trend

 

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