Uncollateralized Call Money Market is a key segment of the interbank money market where financial institutions borrow and lend short-term funds without requiring collateral. Functioning of the Market Banks with surplus liquidity provide funds to those experiencing short-term cash shortages, typically for a day. The interest rate applied to these transactions is known as the call money rate. Since no collateral is involved, transactions are based on mutual trust among banks. Significance ➡️ Liquidity Management – Enables banks to efficiently address short-term liquidity requirements. ➡️Monetary Policy Impact – The Reserve Bank of India (RBI) utilizes call money rates to regulate interest rates across the economy. ➡️Reference Rate for Other Instruments – Influences repo rates, bond yields, and lending rates in the financial system.