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Financial markets

RBI Extends Market Hours for Call Money and Repo Transactions to Boost Efficiency

Strategic Insights

— 1 min read

The Reserve Bank of India (RBI) has extended market hours for call money and repo transactions to enhance the efficiency of financial markets. This change, which comes into effect from July 1 for call money and August 1 for repo and tri-party repo transactions, is aimed at aligning with the increasing size and diversity of different domestic markets. The new timings for call money will be from 9 am to 7 pm, while repo and tri-party repo will operate from 9 am to 4 pm.

Key Takeaways:

  • The RBI has extended market hours for call money and repo transactions for the first time since 2019 to boost efficiency in financial markets.
  • The new timings for call money are 9 am to 7 pm, effective from July 1, while repo and tri-party repo will operate from 9 am to 4 pm, effective from August 1.
  • The extension of market hours is in sync with the increasing size of different domestic markets and the growing number of participants and products.
  • The RBI took the decision after examining the recommendations of a working group set up in February to review the trading and settlement timings of financial markets.
  • Market trading hours are crucial for efficient functioning of financial markets, influencing liquidity, volatility, and price discovery.
  • The trading hours for government securities, foreign exchange, and interest rate derivatives markets remain unchanged.
  • The last comprehensive review of market timings was undertaken in 2019.

Statistics:

  • New market timings for call money: 9 am to 7 pm
  • New market timings for repo and tri-party repo: 9 am to 4 pm
  • Number of participants in different markets: Increasing
  • Diversity of products: Increasing
  • Date of report publication by the working group: Not specified (published on RBI's website)
  • Last comprehensive review of market timings: 2019
  • Previous market hours: 9 am to 5 pm for call money, 2.30 pm for government securities, 3 pm for tri-party repo, and 5 pm for corporate bond repos

Sources:

  • The Reserve Bank of India (RBI)
  • RBI Website (report by the working group)

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