The call money market, originally confined to inter-bank transactions, has seen a gradual but significant evolution over the decades. In 1971, the Life Insurance Corporation and UTI were permitted to lend in this market. By 1990, participation widened further to include the General Insurance Corporation, the Industrial Development Bank of India, and the National Bank for Agriculture and Rural Development as lenders. In April 1991, other entities with sufficient surplus funds were also allowed, provided they met minimum operational thresholds and routed their transactions through the Discount and Finance House of India.This liberalisation continued through the 1990s. In 1995, private mutual funds got access to the call money market, and in 1997, the exclusive routing facility granted to DFHI was extended to other primary dealers. By 1998, with operational thresholds lowered, the number of entities using PDs to route transactions rose sharply.
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