RBI extends amended money market trading hours from 10 am to 2 pm till further notice
RBIearlier announced revised trading hours for money markets starting from April 7.
- Back then, the RBI said that this change is only temporary and will be back to normal after April 30.
- All regular banking services for customers, including RTGS, NEFT, e-kuber and other retail payments systems will continue to be available as per extant timings.
- All market operations will continue from 10 am to 2 pm.
AdvertisementThe Reserve Bank of India today extended the revised money market trading hours till further notice. On April 7, it reduced the trading hours to reduce stress on its staff till April 30.
On the day this deadline ends, RBI said that it will remain so until further notice. “It has been decided that the amended trading hours i.e., from 10.00 am to 2.00 pm for BI-regulated markets that were effective till the close of business on Thursday April 30, 2020 vide press release dated April 16, 2020 shall be extended till further notice,” said RBI in a statement.
RBI also said the market trading timings will be reviewed on issuance of directions pertaining to lockdown from the government.
All markets operations including term money, market repo and tri-party repo in government securities, commercial paper and certificates of deposit, repo in corporate bonds, government securities, foreign currency and Indian rupee trades including forex derivatives and rupee interest rate derivatives other than those traded on recognised stock exchanges will only operate from 10 am to 2 pm.
Their earlier trading for different money markets opened at 9 am and closed at 6 pm.
“COVID-19 outbreak has necessitated lockdowns, social distancing, restrictions on the movement of people and non-essential activities, work from home arrangements and business continuity plans. The resultant dislocations have adversely impacted the functioning of financial markets. The thinning out of activity is impacting market liquidity and increasing volatility of financial prices,” Indian central bank said in an earlier statement.
“In order to minimise these risks and to ensure that market participants maintain adequate checks and supervisory controls while optimising thin resources and ensuring the safety of personnel,” RBI said.
However, all regular banking services for customers, including RTGS, NEFT, e-kuber and other retail payments systems will continue to be available as per extant timings.
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