RBI Rewires Market Clocks: Extended Hours to Sharpen India’s Financial Edge

The Reserve Bank of India (RBI) has made a bold move to boost the efficiency of India’s financial markets by extending trading hours for key segments. Effective July 1, 2025, the call money market will remain open from 9:00 AM to 7:00 PM—a two-hour extension—while market repo and tri-party repo (TREP) trading will run from 9:00 AM to 4:00 PM from August 1, up from previous early closures.

 

Key Highlights:

 

•⁠  ⁠Call Money Market Extension: The call money market, crucial for overnight liquidity, will now operate until 7:00 PM, giving banks and primary dealers more flexibility to manage their short-term funding needs.

 

•⁠  ⁠Repo Market Expansion: Market repo and TREP transactions, vital for collateralized borrowing and lending, will see their trading window stretch to 4:00 PM, harmonizing with broader money market cycles and settlement processes.

 

•⁠  ⁠Working Group Recommendations: The changes follow a comprehensive review by an RBI-appointed working group, which considered evolving market size, participant diversity, and public feedback.

 

•⁠  ⁠Other Markets Unchanged: Trading hours for government securities, foreign exchange, and interest rate derivatives remain unaffected by this update.

 

Outlook:

By extending market hours, the RBI is aiming to improve liquidity, operational efficiency, and risk management across India’s financial sector. This move is expected to support the growing complexity and scale of the country’s markets, fostering a more robust environment for participants and investors alike.

 

Sources: Economic Times, Reuters, Business Standard