RBI extends trading hours from July 1

New Delhi

The Reserve Bank of India (RBI) announced on Wednesday that it will extend trading hours for the call money market, market repo, and Tri-Party Repo (TREP) from July 1, 2025. This decision follows recommendations made by a working group led by Radha Shyam Ratho.

Currently, the call money market closes at 5:00 PM, but from July 1, it will be open from 9:00 AM to 7:00 PM. This extension by two hours is aimed at giving market participants more time to trade and manage liquidity.

From August 1, the market repo and TREP segments will also see extended hours. These markets will now close at 4:00 PM instead of 2:30 PM, operating from 9:00 AM to 4:00 PM.

According to the RBI, these changes will provide more flexibility to banks and financial institutions. They will also help improve liquidity management in the overnight market and lead to better price discovery.

There will be no changes in the trading hours of other financial markets such as government securities, foreign exchange, and interest rate derivatives for now. These will continue to follow their current schedules.

The working group that suggested these changes was tasked with reviewing trading and settlement timings to support better market development. The RBI stated it is still reviewing other proposals from the group and may take more decisions later.

By giving more trading time, the RBI aims to help financial institutions better handle short-term funding needs and make India’s financial markets more efficient and dynamic.