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Key Points

The RBI has decided to extend trading hours for call money and repo markets starting July 1. The move, based on a working group's recommendations, aims to improve liquidity and price discovery. While call money markets will now operate till 7 PM, repo segments will stay open till 4 PM. Other markets like G-Sec and forex will continue with existing timings.

Key Points: RBI Extends Call Money and Repo Market Hours From July 1

  • Call money market hours extended to 9 AM–7 PM from July 1
  • Repo and TREP segments to operate till 4 PM from August 1
  • Aims to improve liquidity and price discovery
  • No changes in G-Sec, forex, and derivatives timings
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RBI extends trading hours for call money and repo markets from July 1

RBI increases call money market timings till 7 PM and repo segments till 4 PM to enhance liquidity and price discovery.

"The market timings for call money shall be extended to 7:00 PM with effect from July 01. – RBI"

New Delhi, June 25

The Reserve Bank of India (RBI) on Wednesday announced that it will extend the trading hours for the call money market, market repo, and Tri-Party Repo (TREP), starting July 1.

This decision is based on the recommendations made by a working group led by Radha Shyam Ratho.

According to an official statement, the trading hours for the call money market will be extended by two hours.

Currently, the market closes at 5:00 pm, but from July 1, it will remain open till 7:00 pm. The call money market will now operate from 9:00 am to 7:00 pm.

“The market timings for call money shall be extended to 7:00 PM with effect from July 01. Accordingly, the revised market hours shall be from 9:00 AM to 7:00 PM,” the central bank stated.

Similarly, trading hours for the market repo and TREP segments will be extended to 4:00 pm, compared to the present closing time of 2:30 pm.

“The trading hours of market repo and Tri-Party Repo (TREP) shall be extended to 4:00 PM with effect from August 01. Accordingly, the revised trading hours shall be from 9:00 AM to 4:00 PM,” RBI mentioned.

The RBI said this move will give more flexibility to market participants and help improve liquidity management in the overnight money market.

The central bank believes these extended hours will also lead to better price discovery and allow financial institutions to manage their short-term funding needs more effectively.

However, there will be no changes for now in the trading hours of other markets such as government securities, foreign exchange, and interest rate derivatives. These will continue to operate as per their existing timings.

The working group that recommended these changes was asked to review the current trading and settlement timings to improve market development, support price discovery, and make liquidity management more efficient.

The RBI also mentioned that it is still reviewing other suggestions made by the working group and will take further decisions in the future.

- IANS

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Reader Comments

R
Rajesh K.
Good move by RBI! Extended hours will help businesses manage their cash flows better, especially those dealing with international transactions. Hope this improves liquidity as intended. 🙌
P
Priya M.
As someone working in treasury operations, this is a welcome change. The current 5pm deadline was too restrictive. Now we can align better with global markets. Kudos to RBI for this progressive step!
A
Amit S.
While the intention is good, I wonder if this will increase workload for bank employees without additional compensation. RBI should also think about the human side of such decisions.
S
Sunita R.
Finally! Our company often faced issues with last-minute fund requirements after 5pm. This extension will reduce our dependency on expensive short-term loans. Jai Hind! 🇮🇳
V
Vikram J.
Hope RBI ensures proper monitoring during extended hours. Extended trading without adequate oversight could lead to volatility. Otherwise, this is a step in right direction for financial markets.
N
Neha P.
Interesting move. I'm curious why they're implementing different timelines for call money (July 1) vs repo markets (August 1). Wouldn't simultaneous implementation be better?

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