Q. Which of the following is/are the participant/s of call money market?
1.Commercial banks
2.Cooperative banks
3.Regional rural banks
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: C

Explanation: The call money market is an important segment of the money market where borrowing and lending of funds take place on overnight basis.

  • Participants in the call money market in India currently include scheduled commercial banks (SCBs)—excluding regional rural banks), cooperative banks (other than land development banks), insurance.
  • Prudential limits, in respect of both outstanding borrowing and lending transactions in the call money market for each of these entities, are specified by the RBI.

Source: Ramesh Singh