RBI temporarily revises trading hours in money markets amid COVID-19 lockdown

Amid the nationwide coronavirus lockdown for containment efforts of the viral disease, the Reserve Bank of India on Friday notified changes in trading hours in the money markets to adjust to the prevailing situation. Trading hours in the corporate and government bonds as well as that of currency markets have been revised to 10 am-2 pm which will kick into effect from Tuesday, April 7 and will continue till April 17.

The central bank noted that the necessitated lockdown due to the COVID-19 outbreak has resulted in staff and IT resources to be severely affected, posing operation and logistic risks.

"The thining out of activity is impacting market liquidity and increasing volatility in the financial prices," the RBI stated, adding that in order to minimize these risks and to ensure that market participants maintain adequate checks and supervisory control, the revision of trading hours has been considered.

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Markets who's timings have changed to 10 am to 2 pm:

• 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 (Central Government Securities, State Development Loans and Treasury Bills)
• Foreign Currency (FCY)/Indian Rupee (INR)
• Trades including Forex Derivatives (other than those traded on recognised stock exchanges)
• Rupee Interest Rate Derivatives (other than those traded on recognised stock exchanges)

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No changes in RTGS, NEFT timings

The RBI however maintained that all banking services for customers, including RTGS (Real Time Gross Settlement), NEFT (National Electronic Funds Transfer), e-Kuber and other retail payments systems will continue to be available as per extant timings. Various commercial banks have recently recommended their customers to use digital payment modes to avoid visiting a bank branch in line with social distancing norms in place to prevent the spread of COVID-19.

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(PTI Photo)