What is Call Money in India?

Call money is a temporary monetary loan that must be paid in one go or instantly when the money lender asks for it. Call money does not have to stick to a fixed schedule, and the lender doesn't provide any notice for reimbursement. Call money is a temporary monetary loan that must be paid in one go or instantly when the money lender asks for it. Call money does not have to stick to a fixed schedule, and the lender doesn't provide any notice for reimbursement.

Call money is an important aspect of the Indian financial system. Banks collect interest using call money, known as the call loan rate. It is essential in scenarios when money is needed overnight or on the short statement for up to 14 days.
The notice or call money market is the most vital segment of the Indian capital market. Primary dealers (PDs) and banks can borrow and lend in the market, but non-bank parties like mutual funds, corporates, and financial institutions are only allowed to lend.