‘Call Money’ is the borrowing or lending of funds for 1day.Banks and Primary Dealers (PDs) borrow and lend overnight or for the short period of time to meet their short term mismatches in fund positions. This borrowing and lending is on unsecured basis.
*Call money is a very short-term bank loan that does not contain regular principal and interest payments.
Where money is borrowed or lend for period between 2 -14 days it is known as ‘Notice Money’. And ‘Term Money’ refers to borrowing/lending of funds for period exceeding 14 days.
*Call money is a very short-term bank loan that does not contain regular principal and interest payments.
Where money is borrowed or lend for period between 2 -14 days it is known as ‘Notice Money’. And ‘Term Money’ refers to borrowing/lending of funds for period exceeding 14 days.