The group recommends that the transaction window should remain open until 7pm instead of the current 5pm
The move is designed to help banks better manage their funds based on the needs of real-time payment systems.
However, the group did not recommend trading time changes in other financial markets, such as government securities, interest rate derivatives or foreign exchange markets.
The working group is chaired by RBI Executive Director Radha Shyam Ratho. The Reserve Bank of India announced the establishment of the group during a monetary policy review in February this year.
The group's report notes that independent major dealers (SPDs) require longer trading hours in the call currency market.
They also suggest that the report window (including cancellation of transactions) should be opened to 7.30 pm
The report highlights the significant growth in the overnight money market over the past decade.
Between 2014-15 and 2024-25, the market's annual turnover jumped from Rs 28,137 crore to Rs 13,240.5 crore.
Meanwhile, the average daily turnover increased from Rs 1.17 crore to Rs 5.52 crore. This sharp rise is mainly due to the growth of the collateral market in the market.
During the same period, the turnover of this segment rose from Rs 24,527 crore to Rs 1,29,666 crore.
In contrast, the turnover of the money market that does not bear traffic fell from Rs 3,611 crore to Rs 2,742 crore.
The report further said that the call money market is only open to banks and independent major dealers.
These participants can use the RBI liquidity adjustment facility. Cooperative banks are the main lenders in this market, while SPD is the main borrower.
