Scribd Logo
Upload

Welcome to Scribd!

  • 10 views

    Call Money Market

    Uploaded by

    Parimal Maldhure
    The call money market is a short-term market where funds are borrowed or lent for periods ranging from one day to two weeks, with no collateral required. It serves as a key segment of India's money market, allowing banks to borrow and lend funds between each other on an overnight or slightly longer basis to manage their liquidity needs, with interest rates reacting quickly to supply and demand.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Call Money Market

    Uploaded by

    Parimal Maldhure
    10 views4 pages
    The call money market is a short-term market where funds are borrowed or lent for periods ranging from one day to two weeks, with no collateral required. It serves as a key segment of India's money market, allowing banks to borrow and lend funds between each other on an overnight or slightly longer basis to manage their liquidity needs, with interest rates reacting quickly to supply and demand.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The call money market is a short-term market where funds are borrowed or lent for periods ranging from one day to two weeks, with no collateral required. It serves as a key segment of India's money market, allowing banks to borrow and lend funds between each other on an overnight or slightly longer basis to manage their liquidity needs, with interest rates reacting quickly to supply and demand.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    10 views4 pages

    Call Money Market

    Uploaded by

    Parimal Maldhure
    The call money market is a short-term market where funds are borrowed or lent for periods ranging from one day to two weeks, with no collateral required. It serves as a key segment of India's money market, allowing banks to borrow and lend funds between each other on an overnight or slightly longer basis to manage their liquidity needs, with interest rates reacting quickly to supply and demand.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 4

    CALL MONEY MARKET

    CONCEPT

     The Call Money Market is a market for very short term


    funds repayable on demand and with a maturity period
    ranging from one day to a fortnight.
     When the money is borrowed or lent for a day, it is known
    as call/overnight money and when it is done for more than a
    day, it is known as notice money.
     No collateral security is required to cover these
    transactions.
    FEATURES

     Key segment of Indian money market


     Basically an inter-bank market.
     Highly liquid market.
     Highly volatile & Risky.
     Loans are repayable on demand.
    ADVANTAGES

     Banks can easily & quickly borrow funds to meet their


    needs.
     Temporary surplus funds can be profitably employed.
     Interest rate in call money market reacts very quickly to the
    demand and supply of funds. Hence, the lender can get the
    best interest for short period.
     Money lent through call money market is vey liquid and
    short term in nature.

    You might also like