New Trading Hours for Market Repo and TREP Operations from August 1; Will It Affect Forex & G-Sec Markets Too?

The Reserve Bank of India (RBI) has announced that it will extend the trading hours for two important financial markets, the market repo and Tri-Party Repo (TREP) operations, starting August 1, 2025. These markets will now be open for trading from 9:00 AM to 4:00 PM, instead of closing at 3:00 PM as they did earlier. This means participants will get one extra hour to complete their transactions.

Market repo and TREP are used by banks and financial institutions to borrow and lend money for short periods, usually overnight. In simple terms, they help banks manage their daily cash needs by borrowing money from one another using government securities as a form of security.

What is Market Repo?

A market repo is a short-term loan that banks and financial institutions take by using government securities as collateral. For example, if a bank needs money for one day, it can borrow it from another bank and promise to return it the next day with a small interest, while keeping government bonds as security. This helps banks manage their daily cash requirements.

What is Tri-Party Repo (TREP)?

Tri-Party Repo (TREP) is similar to the regular repo market but involves a third party, usually a clearing agency to handle the deal. This third party makes sure that the transaction is safe, the securities are held properly, and both sides follow the rules. TREP is considered more secure and transparent than a regular repo transaction, especially for institutions that want less operational risk.

Earlier this year, the RBI had also extended the trading hours for the call money market, which is another way banks lend money to each other without using any security. Since July 1, 2025, the call money market is now open from 9:00 AM to 7:00 PM, giving banks two extra hours to manage their money.

Will Other Markets See a Timing Change Too?

However, there are no changes in the trading hours for other markets such as the government securities market, foreign exchange (forex) market, and interest rate derivatives market. These will continue to operate on their usual schedule.

RBI says these changes are meant to make the Indian financial system more flexible and efficient. By allowing more time for trading, banks and financial institutions can manage their funds better, especially on days when the market is more volatile.