The Call Money Market deals with overnight or very short-term funds (up to 14 days) lent and borrowed among banks. Its rates (Call Rate) are highly sensitive to daily liquidity conditions in the banking system and immediate policy actions by the Reserve Bank of India (RBI), leading to significant fluctuations in rates.
The most volatile part of the Organised Money Market in India is
Asked in RPSC RAS Prelims 2018 · Topic: Money & Banking (Financial Markets: Money Market and Capital Market (Components, Instruments, Role))
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