The Reserve Bank of India (RBI) has announced an extension in trading hours for key short-term money markets, following recommendations from a recently formed working group. Starting July 1, the interbank call money market will operate from 9 am to 7 pm, up from the current 9 am to 5 pm. Meanwhile, trading hours for the repo and tri-party repo (TREP) markets will be extended from 9 am to 4 pm beginning August 1, instead of the present 9 am to 3 pm.

The changes come as part of the RBI’s efforts to facilitate deeper market development, improve price discovery, and optimise liquidity requirements, according to an official circular. These adjustments follow the recommendations of the Working Group on Comprehensive Review of Trading and Settlement Timings for markets regulated by the central bank.

Trading hours for government securities, foreign exchange, and interest rate derivatives markets will remain unchanged.

The working group, formed in February and chaired by RBI executive director Radha Shyam Ratho, includes eight other members from various sectors of the financial industry. Its mandate was to review the trading and settlement timings across financial markets regulated by the RBI. The group examined recent sector developments such as increased digitisation, the 24×5 operations of certain forex and interest rate derivative markets, growing non-resident participation, and round-the-clock payment systems availability.

Besides reviewing market operating hours, the group assessed challenges like market volatility, liquidity requirements, netting efficiency, and price transmission across markets. It also studied international market timings and their impact on liquidity, trading volumes, and market participation.

The RBI stated that other recommendations from the working group are still under consideration and decisions will be communicated in due course.

The move to extend trading hours in the call money and repo segments aims to align Indian financial markets with global practices and support better liquidity management for market participants.