Daijiworld Media Network – Mumbai

Mumbai, May 2: A working group set up by the Reserve Bank of India (RBI) has recommended extending the trading hours for the call money market, proposing that the market remain open until 7 pm instead of the current closing time of 5 pm.

This proposal aims to align the trading hours with the real-time payment system, assisting banks in better managing their funds. However, the panel did not suggest any changes to the trading hours for other financial markets like government securities, interest rate derivatives, or foreign exchange markets.

The group, chaired by Radha Shyam Ratho, Executive Director at RBI, was formed following the monetary policy review in February this year. The report highlights that standalone primary dealer (SPDs) had requested longer trading hours for the call money market to accommodate increasing demand and activity.

Key findings of the report indicate significant growth in the overnight money market over the past decade. Between 2014-15 and 2024-25, the annual turnover in this market grew from Rs 281.37 lac cr to Rs 1,324.05 lac cr, with the daily average turnover increasing from Rs 1.17 lac cr to Rs 5.52 lac cr.

This growth has been largely driven by the expansion of the collateralised segment, where turnover surged from Rs 245.27 lac cr to Rs 1,296.62 lac cr. Meanwhile, turnover in the uncollateralised call money market saw a decrease, dropping from Rs 36.10 lac cr to Rs 27.42 lac cr.

The call money market is exclusively available to banks and standalone primary dealers, who have access to the RBI’s liquidity adjustment facilities. Cooperative banks are the primary lenders, while SPDs are the main borrowers in this segment.