Money Markets To Remain Closed On Jan 22: RBI

Money markets will remain closed on Jan. 22, with the Maharashtra government announcing a holiday in connection with the consecration of the Ram temple in Ayodhya.

The Maharashtra government has declared Jan. 22 as a public holiday. So, there will be no transactions and settlements in government securities (primary and secondary), foreign exchange, money markets and rupee interest rate derivatives on that day, the Reserve Bank of India (RBI) said in a fresh circular on Friday.

The central bank modified its earlier circular wherein it had said that trading in money markets will open at 2.30 pm instead of 9 am on Jan. 22.

According to RBI, the three-day Variable Rate Repo auction conducted on Friday with date of reversal on Jan. 22 will now be reversed on Jan. 23.

Further, it said the three-day VRR auction announced earlier in the day stands cancelled.

Instead, a two-day VRR auction will be conducted on Jan. 23.

Public sector banks, insurance companies, financial institutions and Regional Rural Banks across the country will remain closed for half-day on Jan. 22.

The Department of Personnel and Training has also issued an order for a half-day closure for central government establishment on Jan. 22.