In a recent update, the Reserve Bank of India (RBI) has modified its earlier communication regarding market trading hours for January 22. The RBI stated that the Government of Maharashtra has officially declared January 22, 2024, as a public holiday.
In response to the Government of Maharashtra’s declaration of January 22, 2024, as a public holiday under Section 25 of the Negotiable Instruments Act, 1881, the Reserve Bank of India (RBI) has made significant modifications to its earlier press release (2023-2024/1710) on “Market Trading Hours on January 22, 2024.”
On the designated public holiday, i.e., January 22, 2024 (Monday), the RBI announces a suspension of all transactions and settlements in Government securities (primary and secondary), foreign exchange, money markets, and Rupee Interest Rate Derivatives. The settlement of any pending transactions will be postponed to the subsequent working day, which is January 23, 2024 (Tuesday).
Public Holiday on January 22, 2024 under the Negotiable Instruments Act, 1881https://t.co/wDfR7ftTcF
— ReserveBankOfIndia (@RBI) January 19, 2024
The 3-day Variable Rate Repo (VRR) auction, initially scheduled for reversal on January 22, 2024 (Monday), will now be executed on January 23, 2024 (Tuesday). Additionally, the 3-day VRR auction outlined in RBI’s press release (2023-2024/1712) is canceled. In its place, a 2-day VRR auction is set to take place on January 23, 2024 (Tuesday), with a revised press release issued separately.
To accommodate these adjustments, an extra issue each of Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) with reversal on January 23, 2024 (Tuesday) is made available, effective January 19, 2024 (Friday).
These modifications align with the public holiday schedule and ensure the smooth functioning of market operations in accordance with the regulatory framework.
