RBI Working Group: Call Money Market Hours Till 7 PM
Why in the news
An RBI working group chaired by Radha Shyam Ratho suggested new trading hours to give banks more room to manage liquidity.
Key facts
| Segment | Recommendation |
|---|---|
| Call money | Open till 7:00 PM (now 5:00 PM) |
| Market repo and TREP | Align and extend to 4:00 PM; one TREP timing for all participants |
| LAF auction | Earlier, at 9:30-10:00 AM (now 10:00-10:30 AM) |
| Government securities | Onshore hours unchanged; offshore non-resident trading 5:00-11:30 PM with T+1 NDS-OM reporting and T+2 settlement |
| Interest rate derivatives, forex | No change |
Reasons
- After 5 PM many banks face settlement uncertainty.
- Higher volumes and global practice need flexible rules; participants wanted operational flexibility.
Market data
- Overnight money market yearly volume: ₹281.37 trillion in 2014-15 versus ₹1,324.05 trillion in 2024-25.
- Per-day average moved from ₹1.17 trillion to ₹5.52 trillion over the span.
- Segment shares: TREP 69%, market repo 29%; call money down from 13% to 2%.
Exam angle
- Panel head: Radha Shyam Ratho.
- Terms: TREP, LAF, NDS-OM.