What is the time period of Notice Money in the Indian Money Market?

Correct option is B

The time period of Notice Money in the Indian Money Market is 2-14 days. Notice money is a short-term borrowing instrument between banks and financial institutions.
Key Features of Notice Money
· Duration: It is borrowed for a period ranging between 2 to 14 days, distinguishing it from Call Money (overnight borrowing) and Term Money (borrowed for more than 14 days).
· Purpose: Used by financial institutions to manage short-term liquidity mismatches.
· Participants: Includes scheduled commercial banks (excluding RRBs) and primary dealers.
· Interest Rates: Determined by the prevailing money market conditions and typically influenced by the demand-supply dynamics of funds.
Regulatory Guidelines
· Regulated by the Reserve Bank of India (RBI) under its monetary policy framework.
· Participants are required to adhere to the limits set by RBI for exposure in the interbank call and notice money market.