Money markets to remain open on all Saturdays - RBI

With government declaring the second and fourth Saturdays as public holiday for banks from September 1, RBI today said that all money market segments will continue to remain open on all Saturdays.

The forex market and government securities markets, along with all OTC derivative markets, would continue to remain closed on all Saturdays, RBI said while announcing supporting changes in its working in the wake of the government notifying public holiday on the second and fourth Saturdays of every month for all banks.

However, RBI’s payment systems including Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT) and Cheque Clearing systems would not be operated on the second and fourth Saturdays.

On other Saturdays, the payment systems would operate for the full day, RBI said.

RBI said it is making necessary changes in its functioning as “a regulator of banks, financial markets and payment and settlement systems”.

The banking departments in Regional Offices of the Reserve Bank will remain open for the full day on working Saturdays to support the functioning of the financial markets and the payment systems. Government business will be transacted at agency banks on working Saturdays.

Processing of future value dated transactions with value date falling on second and fourth Saturdays will not be undertaken under the RBI’s payment systems from September 1.

The central bank said the new arrangements would be reviewed after six months. (MoneyControl)