The Chairmen/Chief Executives of all Scheduled Commercial Banks (excluding RRBs)
/ Co-operative Banks / Primary Dealers
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.
Encls. : As above
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:-
3.2 Non-bank institutions (other than PDs) are not permitted in the call/notice money market.
4.1 Eligible participants are free to decide on interest rates in call/notice money market.
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.
7.1 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.
I. List of Institutions Permitted to Participate in the Call/Notice Money Market both as Lenders and Borrowers
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 |