RBI's Working Group Suggests Longer Hours For Interbank Money Markets - All You Need To Know

The Reserve Bank of India (RBI) has set up a working  group, which has recommended longer operating hours for the interbank money markets, while maintaining the current schedule for the bond as well as forex markets, a notice issued by the central bank on Friday said.

Why Was The Working Group Set Up?

The central bank set up this working group to study the changing needs of the market participants and necessary adjustments across different market segments.

What Else Did RBI's Working Group Suggest?

This group also suggested that the interbank money markets remain operational till 7 pm IST, instead of the current standard of 5 pm, so that they could meet the needs of banks in real-time payment systems.

Additionally, the group also suggested that the closing time for the market repo and tri-party repo markets, used by mutual funds should be extended to 4 pm.

Currently, the market repo is available till 2:30 pm, while tri-party repo is available for half an hour beyond that.

However, the group has not recommended changing the timings of the government securities and foreign exchange markets.

The central bank added that it will field suggestions on the proposals till the end of May before finalising the timings.

Also Read: What’s Changing in Your Wallet This May? All You Need To Know