The pandemic that struck India in April 2020, led to a lot of drastic changes to everyday life with work from home becoming a norm among other digital trends. The stock market and others regulated by the RBI remained operational, although timings and the way things work had to be tweaked. But as the pandemic’s impact is ebbing, the Reserve Bank of India has decided to restore timings to the way they were.
What will change?
With the extension of trading hours, the money market under RBI will be open from trading from 9:00 AM to 5:00 PM, which is a one and a half hour more than 3:30 PM now. The same timings will apply to the commercial paper and certificates of deposit market, as well as Rupee Interest Rate Derivative market. The changes will come into effect from December 12, 2022, which is eight months after changes were made in April 2022.
What will be affected?
The move is a part of measures to bring back normalcy into liquidity operations. The money market refers to a space for securing short-term funds which can be for a day or for a year. On the other hand certificate of deposits are issued by financial institutions and corporations to raise funds.
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