RBI Revises Trading Timings for Call Money, Repo, and TREP Segments

In a significant step to enhance market liquidity and operational flexibility, the Reserve Bank of India (RBI) has announced that the call money market timings will be extended by two hours—till 7 PM—starting July 1, 2025. The RBI has also decided to extend the trading hours for market repo and Tri-Party Repo (TREP) segments from August 1, 2025, as part of its broader strategy to improve financial market infrastructure based on recommendations of an expert working group.

Why in News?

The decision by the RBI to revise the trading and settlement timings for certain financial markets follows the findings and recommendations of a Working Group chaired by Radha Shyam Ratho. This move aims to accommodate the evolving needs of market participants, ensure smoother liquidity management, and align with global practices.

What is Call Money Market?

• The call money market is an uncollateralized, overnight borrowing market.
• It is used by banks and standalone primary dealers (SPDs) to manage short-term liquidity.

Revised Timings

Call Money Market

• Current timing: 9:00 AM to 5:00 PM
• New timing (effective July 1, 2025): 9:00 AM to 7:00 PM

Market Repo & Tri-Party Repo (TREP)

• Market Repo current timing: Closes at 2:30 PM
• TREP current timing: Closes at 3:00 PM
• New timing (effective August 1, 2025): 9:00 AM to 4:00 PM

Objective and Significance

• Enhance operational flexibility for financial institutions.
• Improve liquidity adjustment facility (LAF) operations.
• Align Indian market operations with global best practices.
• Facilitate more efficient trading and risk management.

Scope of Implementation

Applies to,

• Call Money (Uncollateralised)
• Market Repo & Tri-Party Repo (Collateralised)

No changes made to,

• Government Securities (G-Secs) market
• Foreign exchange market
• Interest rate derivatives market

Background

• The RBI had formed a Working Group led by Radha Shyam Ratho to review market timings.
• Stakeholder feedback was also incorporated into the final decision.

Summary/Static	Details
Why in the news?	RBI Revises Trading Timings for Call Money, Repo, and TREP Segments
Effective Dates	Call Money: July 1, 2025; Repo & TREP: August 1 New Repo & TREP Timings: 9:00 AM to 4:00 PM
Affected Entities	Banks, Standalone Primary Dealers (SPDs)
Unchanged Markets	G-Secs, Forex, Interest Rate Derivatives