Master Circular on Call/Notice Money Market Operations

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▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly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 ( 559 kb ) Master Circular on Call/Notice Money Market Operations RBI/2012-13/98 IDMD.PCD. 03/14.01.01/2012-13 July 2, 2012 The Chairmen/Chief Executives of all Scheduled Commercial Banks (excluding RRBs) / Co-operative Banks / Primary Dealers Dear Sir/Madam, Master Circular on Call/Notice Money Market Operations The Reserve Bank of India has, from time to time, issued a number of guidelines/instructions/directives to banks and the Primary Dealers in regard 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 for reference of the market participants and others concerned. It may be noted that this Master Circular consolidates and updates all the instructions/guidelines contained in the circulars listed in the Appendix in so far as they relate to operations of eligible institutions in the call/notice money markets. This Master Circular has also been placed on the RBI website at www.mastercirculars.rbi.org.in . Yours faithfully, (K K Vohra) Chief General Manager Encls. : As above Table of Content Sl. No. Topic 1 Introduction 2 Participants 3 Prudential Limits 4 Interest Rate 5 Dealing Session 6 Documentation 7 Reporting requirement Annexes I. List of institutions permitted in Call/Notice Money Market II. Reporting Format III. Definitions Appendix: List of Circulars consolidated 1. Introduction 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 into money 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 an overnight basis and under notice money market, funds are transacted for a period between 2 days and 14 days. 2. Participants Participants in call/notice money market currently include scheduled commercial banks (excluding RRBs), co-operative banks (other than Land Development Banks) and Primary Dealers (PDs), both as borrowers and lenders ( Annex I ). 3. Prudential Limits 3.1 The prudential limits in respect of both outstanding borrowing and lending transactions in call/notice money market for scheduled commercial banks, co-operative banks and PDs are as follows:- Table: 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 Outstanding borrowings of 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 PDs PDs are allowed to borrow, on average in a reporting fortnight , up to 225 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 (other than PDs) are not permitted in the call/notice money market. 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 the Handbook of Market Practices brought out by the Fixed Income Money Market and Derivatives Association of India (FIMMDA). 5. Dealing Session 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 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 the Negotiated Dealing System-Call, i.e. NDS-Call (a screen-based, negotiated, quote-driven system), do not require separate reporting. It is mandatory for all members of the NDS 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, such non-reported deals may be treated as invalid. 7.2 The reporting time on NDS is up to 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 call/notice/term money transactions reporting, the practice of reporting 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 the RBI, by fax, as hitherto (Annex II). 7.4 In case the situation so warrants, the Reserve Bank may call for information in respect of money market transactions of eligible participants by fax. Annex I (See para 2) I. List of Institutions Permitted to Participate in the Call/Notice Money Market both as Lenders and Borrowers Scheduled Commercial Banks (excluding Regional Rural Banks); Co-operative Banks other than Land Development Banks; and Primary Dealers. Annex III Definitions In these guidelines, unless the context otherwise requires: "Call Money" means deals in overnight funds. "Notice Money" means deals in funds for 2 - 14 days. “Term Money” means deals in funds for 15 days-1 year. "Fortnight" shall be on a reporting Friday basis and would mean the period from Saturday to the second following Friday, both days inclusive. "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 the Act. “Scheduled bank” means a bank included in the Second Schedule of the Reserve Bank of India Act, 1934. "Primary Dealer (PD)" means a financial institution which holds a valid letter of authorisation as a PD issued by the Reserve Bank, in terms of the "Guidelines for PDs in Government Securities Market" dated March 29, 1995, as amended from time to time. "Capital Funds" means the sum of Tier I and Tier II capital as disclosed in the latest audited balance sheet of the entity. In terms of the RBI Act, 1934, NOF for PDs is calculated as (a) the aggregate of the paid-up equity capital and free reserves as disclosed in the latest balance-sheet of the company after deducting there from– (i) accumulated balance of loss; (ii) deferred revenue expenditure; and (iii) other intangible assets; and (b) further reduced by the amounts representing– (1) investments of such company in shares of– (i) its subsidiaries; (ii) companies in the same group; (iii) all other non-banking financial companies; and (2) the book value of debentures, bonds, outstanding loans and advances (including hire-purchase and lease finance) made to, and deposits with,– (i) subsidiaries of such company; and (ii) companies in the same group, to the extent such amount exceeds ten per cent of (a) above. Appendix List of Circulars consolidated 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 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. Participation in Call/Notice Money Market 41 IDMD.PDRD.No. 1096/ 03.64.00/ 2009-10 dated September 02, 2009 Stand-alone Primary Dealers – Increase in Call/Notice Money Borrowing Limit 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. All Rights Reserved. Sitemap | Disclaimer Website owned and managed by Reserve Bank of India. Contact us on helpdoc[at]rbi[dot]org[dot]in Website last updated date: Jul 27, 2026 Supports: Google Chrome 147+ | Firefox 150+ | Microsoft Edge Version 147+ | Safari 17+ Accessibility Statement | Screen Reader and Accessibility Help

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/98 · issued 02 Jul 2012. The plain-English explanation above is BankPulse’s own independent summary.

🖨 Print / Save as PDF 🔗 Copy link☆ Save for later