Interbank Call Money Market (ET)
- 11 Sep 2023
What is the News ?
The RBI is considering launching a pilot program for a central bank digital currency (CBDC) specifically designed for interbank borrowing or the call money market.
Facts About:
- The Interbank Call Money Market is a short-term financial market where big institutions borrow and lend money to each other at interbank rates, which are the interest rates banks charge when they borrow from one another.
- The loans in this market are very short, typically lasting only a week or less.
- These loans are often used by banks to meet their reserve requirements.
- It's not just banks that use this market; other participants can include financial institutions, mutual funds, large corporations, and insurance companies.