Call Money and Short Notice Money

 

Feature	Call Money	Short Notice Money
Definition	Call Money refers to short-term loans that are repayable on demand typically within one day.	Short notice Money refers to short-term loans that are repayable at a short notice typically within 2 to 14 days.
Repayment terms	Repayable on demand without any prior notice	Repayable on a short notice, which could be a few days.
Purpose	Used to manage very short-term liquidity needs of banks and financial institutions	Used to manage short-term liquidity needs that are not as immediate as call money.
Interest rates	Interest rates are typically lower due to the very short duration and high liquidity	Interest rates are generally slightly higher than the call money rates due to a longer maturity
Usage by Banks	Commonly used by banks to manage overnight liquidity positions	Used by banks to manage short-term liquidity over a slightly longer horizon.
Regulatory considerations	Often subject to strict regulatory oversight due to its role in maintaining overnight liquidity	Also subject to regulatory oversight but to a lesser degree than call money.
Transaction volume	Generally high volume due to the frequent need for overnight funds	Lower volume compared to call money given longer repayment period.