RBI Announces Public Holiday on January 22; Check Impact on Financial Markets

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Mumbai, 19th January 2024: The Government of Maharashtra, under Section 25 of the Negotiable Instruments Act, 1881, has declared January 22, 2024, as a public holiday. This announcement, made in modification of the press release 2023-2024/1710 issued earlier today regarding “Market Trading Hours on January 22, 2024,” will have implications on financial transactions and settlements, stated Yogesh Dayal, Chief General Manager of Reserve Bank of India (RBI).

As a result of the public holiday, there will be no transactions and settlements in various financial markets, including Government securities (primary and secondary), foreign exchange, money markets, and Rupee Interest Rate Derivatives on January 22, 2024 (Monday). The settlement of all outstanding transactions will be postponed to the next working day, i.e., January 23, 2024 (Tuesday).

Additionally, the 3-day Variable Rate Repo (VRR) auction, initially scheduled to have its reversal on January 22, 2024 (Monday), will now be reversed on January 23, 2024 (Tuesday). The 3-day VRR auction, as announced earlier today in RBI’s press release 2023-2024/1712, has been cancelled. In its place, a 2-day VRR auction will be conducted on January 23, 2024 (Tuesday). A revised press release with more details on this auction is being issued separately.

To accommodate these changes, on January 19, 2024 (Friday), an additional issue each of Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) has been made available, with the reversal scheduled for January 23, 2024 (Tuesday).

Market participants and stakeholders are urged to take note of these adjustments in light of the public holiday and plan their financial activities accordingly.