Call/Notice Money Market Prudential Limits: Self-Set by Banks
Current · Source: Reserve Bank of India · RBI/2013-14/504 · issued 26 Feb 2014 · ~1 min read
Quick answerRBI has ended the practice of banks approaching it for fixing prudential limits in Call/Notice Money Market. Banks/PDs/co-operative banks can now set these limits with Board approval and inform CCIL and RBI.
The rule, in the simplest words
Banks can decide their own borrowing/lending limits (maximum amount they can lend or borrow) in the Call/Notice Money Market, but only after getting approval from their Board.
The approved limits must be sent to the Clearing Corporation of India Ltd. (CCIL) so the NDS‑CALL computer system can be set up.
Banks also have to tell the RBI’s Financial Markets Department (FMD) about the limits they have set.
This change started on March 3, 2014, so banks no longer need to ask RBI for permission first.
The rule applies to all scheduled commercial banks (except regional rural banks), co‑operative banks and primary dealers, and follows the IDMD Master Circular dated July 1, 2013.
How it plays out — a real example
Rajesh Patel, the Treasury Manager at City Bank in Mumbai, gets his board to approve a borrowing limit of ₹500 crore for the Call Money market. He then emails the approved figure to CCIL so the NDS‑CALL system can record it, and sends a short note to the RBI’s Financial Markets Department confirming the same. By doing this, Rajesh helps the bank move money quickly without waiting for RBI’s permission.
What changed
Previously, banks had to approach RBI for fixing prudential limits for Call/Notice Money Market transactions. Now, banks/PDs/co-operative banks can determine these limits themselves with Board approval, based on the IDMD Master Circular dated July 1, 2013. The limits must be conveyed to CCIL for NDS-CALL system setup and advised to RBI's Financial Markets Department.
What it means for you
This gives banks greater autonomy in managing their short-term liquidity operations, reducing regulatory burden. It shifts responsibility to banks' boards for prudent limit-setting, potentially speeding up market operations. Lenders must ensure robust internal processes to avoid excessive risk-taking.
What you must do
Obtain Board approval for prudential limits on borrowing/lending in Call/Notice Money Market as per the July 1, 2013 Master Circular.
Convey the approved limits to CCIL for configuration in the NDS-CALL system.
Advise RBI's Financial Markets Department (FMD) of the limits set.
Ensure compliance with the circular effective from March 3, 2014.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Co-operative Banks, Primary Dealers
❓ Common questions
What is the key change in this circular?
Banks no longer need RBI's prior approval for prudential limits in Call/Notice Money Market; they can set limits with Board approval.
When does this circular take effect?
It is effective from March 3, 2014.
Who must be informed of the new limits?
The limits must be conveyed to CCIL for NDS-CALL system and advised to RBI's Financial Markets Department.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/504
IDMD/PCD/No. 11/14.01.01/2013-14
February 26, 2014
The Chairmen/ Chief Executives of all Scheduled Commercial Banks (excluding RRBs) / Co-operative Banks / Primary Dealers
Dear Sir/Madam,
Call/Notice Money Market Operations
It has been decided to dispense with the extant practice of Banks/ PDs/ Co-operative banks approaching RBI for fixing of prudential limits for transactions in Call / Notice Money Market. Banks/PDs/ Co-operative banks may, with the approval of their Boards, arrive at the prudential limits for borrowing/lending in Call/Notice Money Market in terms of the IDMD Master Circular dated July 01, 2013. The limits so arrived at may be conveyed to the Clearing Corporation of India Ltd. (CCIL) for setting of limits in NDS-CALL System, under advice to Financial Markets Department (FMD), Reserve Bank of India. This circular comes into effect from March 03, 2014.
Yours faithfully
(K.K. Vohra)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/504 · issued 26 Feb 2014. The plain-English explanation above is BankPulse’s own independent summary.
Convey the approved limits to CCIL for configuration in the NDS-CALL system.
📜 Compliance
Obtain Board approval for prudential limits on borrowing/lending in Call/Notice Money Market as per the July 1, 2013 Master Circular.
Advise RBI's Financial Markets Department (FMD) of the limits set.
Ensure compliance with the circular effective from March 3, 2014.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Commercial Banks (excluding RRBs), Co-operative Banks, Primary Dealers), your first concrete step on “Call/Notice Money Market Prudential Limits: Self-Set by Banks” is: “Obtain Board approval for prudential limits on borrowing/lending in Call/Notice Money Market as per the July 1, 2013 Master Circular.” (RBI issued this 26 Feb 2014).
Action required: Obtain Board approval for prudential limits on borrowing/lending in Call/Notice Money Market as per the July 1, 2013 Master Circular.
Action required: Convey the approved limits to CCIL for configuration in the NDS-CALL system.
Action required: Advise RBI's Financial Markets Department (FMD) of the limits set.
Action required: Ensure compliance with the circular effective from March 3, 2014.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 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=8755&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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