BackCovid-19: RBI reduces trading hours but no change in timings of regular banking services
All regular banking services for customers, including RTGS, NEFT, e-kuber and other retail payments systems will continue to be available as per extant timings, says RBIThe RBI, in an unprecedented move, cut market trading hours for both bonds and foreign exchange to four hours
PremiumEven as RBI has reduced the trading hours of debt as well as currency markets in view of the lockdown following the outbreak of coronavirus, the banking regulator clarified that all regular banking services for customers will continue to be available as usual. "All regular banking services for customers, including RTGS, NEFT, e-kuber and other retail payments systems will continue to be available as per extant timings," said RBI.
The revised market timings will be effective during 7-17 April, 2020, the central bank said in a circular on Friday.
The market will open at 10 am instead of the current 9 am and closing timings too have been revised to 2 pm for all segments.
"The unprecedented situation created by the COVID-19 outbreak has necessitated lockdowns, social distancing, restrictions on movement of people and non-essential activities, work from home arrangements and business continuity plans. The resultant dislocations have adversely impacted the functioning of financial markets. Staff and IT resources have been severely affected, posing operational and logistic risks. The thinning out of activity is impacting market liquidity and increasing volatility of financial prices.
"In order to minimise these risks and to ensure that market participants maintain adequate checks and supervisory controls while optimising thin resources and ensuring safety of personnel, it has been decided to revise trading hours for various markets," said RBI in a statement.
As per the circular, timings of the Government Securities (Central Government Securities, State Development Loans and Treasury Bills) market have been revised to 10 am to 2 pm from the existing 9 am to 5 pm.
Foreign Currency (FCY)/Indian Rupee (INR) Trades including Forex Derivatives market as well as Rupee Interest Rate Derivatives market too have been changed to 10 am to 2 pm from the existing 9 am to 5 pm.
Timings have also been revised for 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.
A couple of weeks ago, RBI told the general public that non-cash digital payment options (like NEFT, IMPS, UPI and BBPS) will be available round the clock to facilitate fund transfers, purchase of goods / services, payment of bills, etc.
"In the context of the efforts to limit the fallout of the coronavirus pandemic by avoiding social contact and visit to public places, public can use these modes of digital payment from the convenience of their homes through online channels like mobile banking, internet banking, cards, etc. and avoid using cash which may require going to crowded places for sending money or paying bills," the RBI notification stated.
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