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Key Points

The RBI has extended call money market timings by 2 hours to 7 PM effective July 1. Market repo and TREPS will trade till 4 PM from August 1. Government securities, forex and derivatives markets retain existing timings. These changes follow recommendations by an RBI Working Group chaired by Radha Shyam Ratho.

Key Points: RBI Extends Call Money Market Hours to 7 PM From July 1

  • Call money market extended to 7 PM from July 1
  • Market repo & TREPS extended to 4 PM from August 1
  • G-sec, forex & derivatives timings unchanged
  • Changes follow RBI Working Group recommendations
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RBI extends call money market timing by 2 hours; Gsec, forex, interest rate derivatives unchanged

RBI extends call money market timings by 2 hours to 7 PM while keeping G-sec, forex & derivatives unchanged

"The revised market hours shall be from 9:00 am to 7:00 pm - RBI Notification"

Mumbai, June 25

The Reserve Bank of India (RBI) has extended the trading hours for the interbank call money to 7:00 pm.

The two-hour extension will come into effect from July 1. The revised market hours shall be from 9:00 am to 7:00 pm.

Banks borrow and lend money in the call market.

The RBI also extended the trading hours of market repo and Tri-Party Repo (TREP) to 4:00 PM, set to be effective from August 01. Accordingly, the revised trading hours shall be from 9:00 am to 4:00 pm.

However, the trading hours for the Government securities market, the foreign exchange market, and the interest rate derivatives market have been kept unchanged.

The Reserve Bank had set up a Working Group with Radha Shyam Ratho as the Chairperson.

The Working Group was mandated to undertake a comprehensive review of trading and settlement timings of financial markets regulated by the central bank.

The Working Group provided recommendations aimed at facilitating further market development, price discovery, and optimisation of liquidity requirements.

Its report was published on the RBI's website, inviting comments from members of the public.

The Reserve Bank has subsequently examined the recommendations of the Committee as well as the feedback received, before recommending the fresh market timings.

Other recommendations of the Working Group are under consideration,n and the decisions thereon will be taken in due course, RBI said today.

- ANI

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Reader Comments

P
Priya K.
Good move by RBI! The extended call money market timing will help banks manage their liquidity better, especially during end-of-day settlements. Hope this brings more efficiency to our financial markets. 👍
R
Rahul M.
Why only partial changes? Shouldn't forex and Gsec markets also get extended hours to match global markets? London and New York have much longer trading hours. India needs to align better with international timings.
A
Anjali S.
As someone working in treasury operations, this change will definitely help in better cash management. The 2 extra hours will reduce overnight borrowing costs for many banks. Smart decision by RBI!
S
Sanjay P.
RBI is taking baby steps when we need bold reforms. The financial markets need complete overhaul - from timings to settlement systems. Hope they implement more Working Group recommendations soon.
N
Neha G.
Interesting move! Will this affect common people like us in any way? Or is this just for banks and big financial institutions? Would appreciate if someone could explain in simple terms.
V
Vikram J.
The phased approach shows RBI's caution. Better to test with call money first before changing all markets. Stability is more important than matching global timings blindly. Well thought out decision.

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