The Reserve Bank of India (RBI) on Wednesday announced revised trading hours for the call money, market repo, and Tri-Party Repo (TREP) markets, with the changes set to roll out in phases beginning July 1. The decision follows the recommendations of a working group chaired by Radha Shyam Ratho, which was tasked with reviewing market functioning and enhancing operational efficiency.
As per the central bank's notification, the call money market—used primarily for overnight borrowing between banks—will see its closing time pushed from 5:00 PM to 7:00 PM. The revised timings of 9:00 AM to 7:00 PM will take effect from July 1.
“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 RBI said in a statement.
Market Repo And TREP To See Extended Hours In August
The market repo and Tri-Party Repo (TREP) platforms, which allow banks and financial institutions to borrow funds using government securities as collateral, will also see an extension in operational hours. From August 1, these markets will be open from 9:00 AM to 4:00 PM, instead of the current 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,” the RBI noted.
Aimed At Boosting Liquidity And Price Discovery
According to the RBI, these changes are intended to improve liquidity management in the overnight money market and provide enhanced flexibility to financial participants. The move is also expected to aid in better price discovery and more efficient handling of short-term funding requirements.
No Change In Other Market Timings
There are currently no changes proposed for trading hours in other financial markets, such as government securities, forex, and interest rate derivatives, which will continue to follow their existing schedules.
The RBI added that it is still reviewing other proposals made by the working group and will consider additional changes as necessary.
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