RBI Announces Money Markets Opening at 2:30 PM on January 22

On January 19, the Reserve Bank of India (RBI) announced a change in the trading hours for money markets on January 22, in light of the government's declaration of a half-day holiday for the consecration of the Ram temple in Ayodhya.

According to a circular issued by the RBI, the money markets will commence trading at 2.30 p.m. instead of the usual 9 a.m. on January 22. The trading hours for various markets regulated by the RBI, including Call/notice/term money, Market repo in Government Securities, Tri-party repo in Government Securities, Commercial paper and Certificates of Deposit, Repo in Corporate Bonds, Government Securities, and Foreign Currency/Indian Rupee, will be limited to 2.30 p.m. to 5 p.m. on that day.

The settlement of the auction of Government of India dated securities conducted on January 19, 2024, is scheduled to take place on January 22, 2024, after the commencement of market trading hours at 2:30 p.m., as specified by the RBI. Regular trading hours for these instruments will be reinstated from January 23.

Furthermore, the Department of Personnel and Training has ordered a half-day closure for central government establishments on January 22, impacting public sector banks, insurance companies, financial institutions, and regional rural banks (RRBs), which will remain closed for half the day.

In a separate circular, the RBI noted that the facility of exchanging/depositing Rs 2,000 banknotes will not be available on Monday, January 22, 2024, at any of the 19 Issue Offices of the central bank due to the half-day closure mandated by the Government of India. The facility is set to resume on Tuesday, January 23. These adjustments aim to accommodate the special circumstances surrounding the consecration of the Ram temple while ensuring smooth financial operations.

(With Agency Inputs)