Indian Money Dot com, Indian Money Review - Call Money Market in India


What is Money Market?
Money Market is a market for trading in short-term loans between banks and financial institutions. Participants in the money market borrow and lend for the short term.
The short-term instruments traded in the Money Market are Call Money Market, Treasury Bills (91 days and 364 days), Certificates of Deposits, Commercial papers, Repurchase agreements and so on.
Call Money Market deals in short-term financial assets, which are close substitutes for money and are repayable on demand.
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Call Money Market in India:
Call Money Market:
1.       Call Money Market mainly deals with day-to-day surplus funds of banks. In India, the purposes of Call Loans are to deal in the Bullion Market and Stock Exchanges.
2.       Money lent for one day in this market is known as “Call Money”.
3.       Money lent for more than a day, but less than 15 days, is called “Notice Money”.
4.       Money lent for 15 days or more in the Inter-Bank Market is called “Term Money”.
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