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Question

Which of the following entities shall not be eligible to participate in the Call, Notice and Term Money Markets, both as borrowers and lenders –:

A Land Development Bank Correct Answer Incorrect Answer
B Scheduled Commercial Banks (excluding Local Area Banks); Correct Answer Incorrect Answer
C Payment Banks Correct Answer Incorrect Answer
D Small Finance Banks Correct Answer Incorrect Answer
E Regional Rural Banks Correct Answer Incorrect Answer

Solution

“Call Money” means borrowing or lending in unsecured funds on overnight basis; “Notice Money” means borrowing or lending in unsecured funds for tenors up to and inclusive of 14 days excluding overnight borrowing or lending; The following entities shall be eligible to participate in the Call, Notice and Term Money Markets, both as borrowers and lenders: (a) Scheduled Commercial Banks (excluding Local Area Banks); (b) Payment Banks; (c) Small Finance Banks; (d) Regional Rural Banks; (e) State Co-operative Banks, District Central Co-operative Banks and Urban Co-operative Banks (hereinafter Co-operative Banks); and (f) Primary Dealers.

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