Call Money

byPaytm Editorial TeamLast Updated: September 10, 2025

Definition

Call Money is a short-term loan given by banks to other banks, repayable on demand, usually within one day.

Importance

  • Helps banks manage short-term liquidity needs.
  • Interest rates change daily.

Example

If a bank needs extra cash for one day, it can borrow call money from another bank.

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