Call Money Market: RBI Extends Trading Hours to 7 PM
Why in the news
RBI changed money market timings to match global practice and ease end-of-day liquidity stress.
| Segment | Effective | Change |
|---|---|---|
| Call money | 1 July 2025 | Open until 7 PM |
| Market Repo, TREP | 1 August 2025 | Close at 4 PM |
About call money
- Short-term, repayable-on-demand funds in the inter-bank market, running overnight to 14 days.
- Call money is for 1 day; notice money is for over 1 day up to 14 days.
- Used to meet liquidity needs, maintain CRR and bridge cash mismatches.
- Participants: banks (not RRBs or cooperatives), primary dealers, RBI as last-resort lender; mutual funds and insurers only lend.
- The call rate is volatile and can change within a day.
Importance
- RBI tracks it for liquidity management and policy transmission.
- When it is high, banks prefer commercial paper or certificates of deposit.
Exam angle
- Notice money maximum: 14 days.