RBI cuts money market trading hours by half to reduce stress on its staff

• RBI announced revised trading hours for money markets starting from April 7.
  
• This change however is only temporary and will be back to normal after April 17.
  
• 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.

The Reserve Bank of India announced revised trading hours for the money market starting from April 7, to reduce stress on its staff.

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. However, the recent change is only temporary. RBI said the change in time would continue up to April 17 before returning to normal schedule.

“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 a 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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