RBI Reforms Money Market Operations with Extended Trading Hours
In a significant move to improve liquidity and flexibility in India’s financial markets, the Reserve Bank of India (RBI) has announced an extension of trading hours for key short-term money market segments.
New Delhi: In a significant move to improve liquidity and flexibility in India’s financial markets, the Reserve Bank of India (RBI) has announced an extension of trading hours for key short-term money market segments. These changes will come into effect starting July 1, 2025, and August 1, 2025, for different segments.
Table of Contents
New Timings for Call Money Market from July 1
The call money market, which currently operates from 9:00 AM to 5:00 PM, will now remain open till 7:00 PM starting July 1.
“The market timings for call money shall be extended to 7:00 PM with effect from July 1,” the RBI said in its official statement.
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This change follows the recommendations of a working group led by Radha Shyam Ratho, constituted to enhance market efficiency and liquidity management.
Repo and TREP Market Hours Extended to 4 PM from August 1
Alongside the call money market, the market repo and Tri-Party Repo (TREP) trading hours will also be extended. From August 1, 2025, these markets will operate from 9:00 AM to 4:00 PM, compared to the existing 9:00 AM to 2:30 PM window.
Objective: Enhance Liquidity & Improve Price Discovery
The RBI stated that these extended hours are intended to:
- Give greater flexibility to market participants
- Improve liquidity management in the overnight money market
- Enable better price discovery
- Help financial institutions manage short-term funding needs more effectively
No Change in Timings for Other Financial Markets
While this update affects the call money, repo, and TREP segments, there will be no changes to the trading hours of:
- Government securities (G-secs)
- Foreign exchange (forex) markets
- Interest rate derivatives
These segments will continue operating as per their current schedules.
Future Changes Under Review
The RBI added that it is still reviewing additional recommendations from the working group, with further announcements to be made in due course.
Summary of New RBI Trading Hours
| Market Segment | Current Timings | New Timings | Effective Date |
|---|---|---|---|
| Call Money Market | 9:00 AM – 5:00 PM | 9:00 AM – 7:00 PM | July 1, 2025 |
| Market Repo & TREP | 9:00 AM – 2:30 PM | 9:00 AM – 4:00 PM | August 1, 2025 |
