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Master Circular on Call/Notice Money Market Operations

Current · Source: Reserve Bank of India · RBI/2008-09/25 · issued 01 Jul 2008 · ~2 min read
Quick answerRBI consolidated all call/notice money market guidelines into a single master circular effective July 1, 2008. It covers participants, prudential limits, interest rates, dealing sessions, documentation, and reporting for scheduled commercial banks (excluding RRBs), cooperative banks, and primary dealers.

What changed

RBI issued a master circular consolidating all existing guidelines on call/notice money market operations issued up to June 30, 2008. This does not introduce new rules but brings together all previous instructions into one document for easier reference. The circular is available on the RBI website.

What it means for you

Banks and primary dealers now have a single reference document for call/notice money market rules, reducing the need to track multiple circulars. Prudential limits on borrowing and lending remain unchanged, with scheduled commercial banks capped at 100% of capital funds (fortnightly average) for borrowing and 25% for lending. Non-bank institutions remain excluded from this market since August 2005.

What you must do

Who it affects

Scheduled commercial banks (excluding RRBs), Co-operative banks (State, District Central, Urban), Primary dealers

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What are the prudential borrowing limits for scheduled commercial banks in the call/notice money market?

On a fortnightly average basis, borrowing should not exceed 100% of capital funds (Tier I + Tier II capital from the latest audited balance sheet). However, on any single day during a fortnight, borrowing can go up to 125% of capital funds.

Are non-bank institutions allowed to participate in the call/notice money market?

No, non-bank institutions have not been permitted in the call/notice money market since August 6, 2005. Only banks (excluding RRBs) and primary dealers can participate.

What is the dealing session timing for call/notice money market transactions?

Deals can be done up to 5:00 pm on weekdays and 2:30 pm on Saturdays, or as specified by RBI from time to time.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 35 kb ) Master Circular – Call/Notice Money Market Operations RBI/2008-09/25 FMD. MSRG. No.22/02.08.003/2008-09 July 1, 2008 Ashadha 10, 1930 (S) The Chairmen/Chief Executives of all Scheduled Commercial Banks (excluding RRBs) / Co-operative Banks / Primary Dealers Dear Sir, Master Circular on Call/Notice Money Market Operations As you are aware, the Reserve Bank of India has, from time to time, issued a number of guidelines/instructions/directives to banks in regard to matters relating to call/notice money market.  To enable eligible institutions to have current instructions at one place, a Master Circular incorporating all the existing guidelines/instructions/directives on the subject has been prepared.  It may be noted that this Master Circular consolidates and updates all the instructions/guidelines contained in the circulars issued up to June 30, 2008, in so far as they relate to operations of eligible institutions in the call/notice money markets.  This Master Circular has been placed on the RBI website at www.mastercirculars.rbi.org.in. Yours faithfully, (Chandan Sinha) Chief General Manager Master Circular on Call/Notice Money Market Operations Table of Contents 1. Introduction 2. Participants 3. Prudential Limits 4. Interest Rate 5. Dealing Session 6. Documentation 7. Reporting requirement 8. Annexes    I. List of institutions permitted in Call/Notice Money Market    II. Reporting Format    III. Definitions 9. Appendix: List of Circulars Master Circular on Call/Notice Money Market Operations 1.  Introduction 1.1 The money market is a market for short-term financial assets that are close substitutes of money. The most important feature of a money market instrument is that it is liquid and can be turned over quickly at low cost and provides an avenue for equilibrating the short-term surplus funds of lenders and the requirements of borrowers. The call/notice money market forms an important segment of the Indian Money Market. Under call money market, funds are transacted on overnight basis and under notice money market, funds are transacted for the period between 2 days and 14 days. 2. Participant s 2.1 Participants in call/notice money market currently include banks (excluding RRBs) and Primary Dealers (PDs), both as borrowers and lenders (Annex I ) .  3. Prudential Limit s 3.1 The  prudential limits in respect of both outstanding borrowing and lending transactions in call/notice money market for banks and PDs  are as follows:- Table 1: Prudential Limits for Transactions in Call/Notice Money Market Sr. No. Participant Borrowing Lending 1 Scheduled Commercial Banks On a fortnightly average basis, borrowing outstanding should not exceed 100 per cent of capital funds (i.e., sum of Tier I and Tier II capital) of latest audited balance sheet. However, banks are allowed to borrow a maximum of    125 per cent of their capital funds on any day, during a fortnight. On a fortnightly average basis, lending outstanding  should not exceed 25 per cent of their capital funds; however, banks are allowed to lend a maximum of 50 per cent of their capital funds on any day, during a fortnight. 2 Co-operative Banks Borrowings  outstanding  by State Co-operative Banks/District Central Co-operative Banks/ Urban Co-op. Banks in call/notice money market on a daily basis should not exceed 2.0 per cent of their aggregate deposits as at end March of the previous financial year. No Limit. 3 Primary Dealers (PDs) PDs are allowed to borrow, on average in a reporting fortnight , up to 200 per cent of their net owned funds (NOF) as at end-March of the previous financial year. PDs are allowed to lend in call/notice money market, on average in a reporting fortnight, up to 25 per cent of their NOF. 3.2 Non-bank institutions are not permitted in the call/notice money market with effect from August 6, 2005. 4.  Interest Rate 4.1   Eligible participants are free to decide on interest rates in call/notice money market. 4.2   Calculation of interest payable would be based on FIMMDA’s (Fixed Income Money Market and Derivatives Association of India) Handbook  of Market Practices. 5.  Dealing Session 5.1 Deals in the call/notice money market can be done upto 5.00 pm on weekdays and      2.30 pm on Saturdays or as specified by RBI from time to time.   6. Documentation 6.1   Eligible participants may adopt the documentation suggested by FIMMDA from time to time. 7. Reporting Requirement 7.1 All dealings in call/notice money on screen-based negotiated quote-driven system (NDS-CALL) launched since September 18, 2006 do not require separate reporting. It is mandatory for all Negotiated Dealing System (NDS) members to report their call/notice money market deals (other than those done on NDS-CALL) on NDS. Deals should be reported within 15 minutes on NDS, irrespective of the size of the deal or whether the counterparty is a member of the NDS or not. In case there is repeated non-reporting of deals by an NDS member, it will be considered whether non-reported deals by that member should be treated as invalid.  7.2 The reporting time on NDS is upto 5.00 pm on weekdays and 2.30 pm on Saturdays or as decided by RBI from time to time. 7.3 With the stabilisation of reporting of call/notice money transactions over NDS as also to reduce reporting burden, the practice of reporting of call/notice/term money transactions by fax to RBI has been discontinued with effect from December 11, 2004.  However, deals between non-NDS members will continue to be reported to the Financial Markets Department (FMD) of RBI by fax as hitherto (Annex II). 7.4 In case the situation so warrants, Reserve Bank may call for information in respect of money market transactions of eligible participants by fax. 8. Annexes Annex I I. List of Institutions Permitted to Participate in the Call/Notice Money Market both as Lenders and Borrowers a) All Scheduled Commercial Banks (excluding RRBs). b) All Co-operative Banks other than Land Development Banks. c) All Primary Dealers ( PDs ). Annex - II Daily Return on Call/Notice/Term Money Market Transactions To The Chief General Manager, Financial Markets Department, 23rd Floor NCOB, RBI, Mumbai-400001 Fax-91-22-22630981 Name of the Bank/Institution : __________________________________________ Code No.(As specified by RBI)__________________________________________ Date __________________________________________ Borrowed Lent Amount (Rs. crore) Range of Interest Rates (% p.a.) Weighted Average Interest Rates (% p.a.) Amount (Rs. crore) Range of Interest Rates (% p.a.) Weighted Average Interest Rates (% p.a.)   1. Call Money (Overnight)               2. Notice Money (2-14 Days)             (a) Transacted on the day             (b) Outstanding * (including day's transactions)             3. Term Money @             (a) Transacted on the day               (15 Days-1 Month)               (1 Month-3 Months)               (3 Months-6 Months)               (6 Months-1 Year)             (b) Outstanding * (Including day's transactions) Amount Borrowed Amount Lent               (15 Days-1 Month)               (1 Month-3 Months)               (3 Months-6 Months)               (6 Months-1 Year)             *In case of outstandings, rates need not be given. @ Where applicable. ______________________ Authorised Signatories  Phone No. : Annex III Definitions In these guidelines, unless the context otherwise requires: 1. "Call Money" means deals in overnight funds 2. "Notice Money" means deals in funds for 2 - 14 days 3. "Fortnight" shall be on a reporting Friday basis and mean the period from Saturday to the second following Friday, both days inclusive 4. "Bank” or “banking company" means a banking company as defined in clause (c) of Section 5 of the Banking Regulation Act, 1949 (10 of 1949) or a "corresponding new bank", "State Bank of India" or "subsidiary bank" as defined in clause (da), clause (nc) and clause (nd) respectively thereof and includes a "co-operative bank" as defined in clause (cci) of Section 5 read with Section 56 of that Act 5. “Scheduled bank” means a bank included in the Second Schedule of the Reserve Bank of India Act, 1934 6."Primary Dealer" means a financial institution which holds a valid letter of authorisation as a Primary Dealer issued by the Reserve Bank, in terms of the "Guidelines for Primary Dealers in Government Securities Market" dated March 29, 1995, as amended from time to time 7."Capital Funds" means the sum of the Tier I and Tier II capital as disclosed in the latest audited balance sheet of the entity. 9. Appendix List of Circulars Sr.No. Circular Number Subject 1. CPC.BC.103/279A-90 dated.12-4-1990 Access to the Call Money Market 2. Ref.DBOD.No.Dir.BC.97/C.347-90 dated April 18, 1990 3. CPC.BC.111/279A-91 dated.12-4-1991 Call/Notice Money and Bills Rediscounting Market. 4. CPC.BC.144/07.01.279/94-95 dated.17-4-1995 Widening Access to Call/Notice Money Market 5. Ref.DBOD.No.FSC.BC.68/24.91.001-95 dated June 27, 1995 6. CPC.BC.162/07.01.279/96-97 dated April 15, 1997 Money Market - Routing of Transactions through DFHI 7. CPC.BC.165/07.01.279/97-98 dated. April 21, 1997 Money Market - Routing of Transactions through Primary Dealers 8. CPC.BC.175/07.01.279/97-98 dated April 29, 1998 Money Market 9. CPC.BC.185/07.01.279/98-99 dated April 20, 1999 Measures for Developing the Money Market - Call/Notice Money Market 10. Ref.No.MPD.2785/279A(MM)/98-99 dated April 24, 1999 Call/Notice Money and Bills Rediscounting Markets - Routing of Transaction 11. CPC.BC.190/07.01.279/99-2000 dated October 29, 1999 Money Market 12. CPC.BC.196/07.01.279/99-2000 dated April 27, 2000 Money Market 13. Ref.No.MPD.3513/279A(MM)/1999-2000 dated April 28, 2000 Call/Notice Money and Bills Rediscounting Markets - Routing of Transactions - Extract from the Statement on Monetary and Credit Policy for the Year 2000-01 dated April 27, 2000 14. MPD.BC.201/07.01.279/2000-01 dated October 10, 2000 Permission to non-banks to lend in the call money market 15. MPD.BC.206/07.01.279/2000-01 dated April 19, 2000 Moving towards Pure Inter-bank Call Money Market 16. DS.PCB.CIR.40/13.01.00/2000-01 dated April 19, 2001 Operations in call/notice money market 17. MPD.2991/03.09.01/2000-01 dated April 21, 2001 Participation in Call/Notice Money Market 18. MPD.3173/03.09.01/2000-01 dated May 8, 2001 Participation in Call/Notice Money Market 19. Ref.DBOD.No.FSC.BC.125/24.92.001/2000-01 dated May 25, 2001 Permission to participate in Call/Notice/Term Money Market and Bills Rediscounting Scheme - Primary Dealers 20. MPD.BC.214/07.01.279/2001-02 dated April 29, 2002 Money Market - Moving towards Pure Inter-bank Call Money Market 21. DS.PCB.CIR.52/13.01.00/2001-02 dated June 24, 2002 Reporting of Call Money Transactions 22. MPD.217/07.01.279/2001-02 dated June 27, 2002 Reliance on Call/Notice Money Market: Prudential Norm 23. MPD.220/07.01.279/2002-03 dated July 31, 2002 Access to Call/Notice Money Market for Primary Dealers: Prudential Norms. 24. MPD.222/07.01.279/2002-03 dated October 29, 2002 Money Market 25. MPD.225/07.01.279/2002-03 dated November 14, 2002 Reliance on Call/Notice Money Market: Prudential Norm 26. MPD.226/07.01.279/2002-03 dated December 11, 2002 Reliance on Call/Notice Money Market: Prudential Norm 27. DBOD.FSC.BC.85/24.91.001/2002-03 dated March 26, 2003 Permission to participate in Call/Notice Money Market and Bills Rediscounting Scheme - Private Sector Mutual Funds 28. DBOD.FSC.BC.86/24.91.001/2002-03 dated March 26, 2003 Permission to participate in Call/Notice/Term Money Market and Bills Rediscounting Scheme - Primary Dealers 29. MPD.BC.230/07.01.279/2002-03 dated April 29, 2002 Money Market - Moving towards Pure Inter-bank Call Money Market 30. MPD.BC.234/07.01.279/2002-03 dated April 29, 2003 Participation of Non-bank Entities in Call/Notice Money Market 31. MPD.BC.235/07.01.279/2002-03 dated April 29, 2003 Reporting of Call/Notice Money Market Transactions on NDS Platform. 32. MPD.BC.241/07.01.279/2003-04 dated November 3, 2003 Money Market - Moving towards Pure Inter-bank Call/Notice Money Market 33. MPD.BC.244/07.01.279/2003-04 dated November 5, 2003 Primary Dealers' Access to Call/Notice Money Market 34. MPD.BC.242/07.01.279/2003-04 dated November 5, 2003 Moving towards Pure Inter-bank Call/Notice Money Market 35. MPD.BC.250/07.01.279/2003-04 dated May 25, 2004 Moving towards Pure Inter-bank Call/Notice Money Market 36. MPD.BC.253/07.01.279/2004-05 dated July 3, 2005. Master Circular on Call/Notice Money Market Operations 37. MPD.BC.259/07.01.279/2004-05 dated October 26, 2004. Moving towards Pure Inter-bank Call/Notice Money Market 38. MPD.BC.260/07.01.279/2004-05 dated December 10, 2004. Reporting of Call/Notice Money Market Transactions. 39. MPD.BC.265/07.01.279/2004-05 dated April 29, 2005. Call/Notice Money Market – Review of Benchmark. 40. MPD.BC.266/07.01.279/2004-05 dated April 29, 2005. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/25 · issued 01 Jul 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Review the master circular to ensure your institution's call/notice money market operations comply with all consolidated guidelines.
📜 Compliance
  • Update internal policies and training materials to reference this master circular as the single source of rules.
  • Verify that your treasury team adheres to the prudential limits on borrowing and lending as per the circular.
  • Ensure reporting formats and dealing session timings (5:00 pm weekdays, 2:30 pm Saturdays) are followed.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an Operations officer at a bank this circular applies to (Scheduled commercial banks (excluding RRBs), Co-operative banks (State, District Central, Urban), Primary dealers), your first concrete step on “Master Circular on Call/Notice Money Market Operations” is: “Review the master circular to ensure your institution's call/notice money market operations comply with all consolidated guidelines.” (RBI issued this 01 Jul 2008).

  1. Circular: RBI/2008-09/25 -- Master Circular on Call/Notice Money Market Operations
  2. Issued: 01 Jul 2008
  3. Action required: Review the master circular to ensure your institution's call/notice money market operations comply with all consolidated guidelines.
  4. Action required: Update internal policies and training materials to reference this master circular as the single source of rules.
  5. Action required: Verify that your treasury team adheres to the prudential limits on borrowing and lending as per the circular.
  6. Action required: Ensure reporting formats and dealing session timings (5:00 pm weekdays, 2:30 pm Saturdays) are followed.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4289&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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