The festival, which is celebrated on the occasion of Eid-e-Milad – was previously declared on September 16.
“The public holiday of September 16, 2024 declared earlier has been cancelled… Government securities market, foreign exchange market, money market and rupee interest rate derivatives market will now be operational on September 16, 2024 (Monday),” the Finance Ministry said. Reserve Bank of India said in a statement.
Settlement of transactions in the secondary market of government securities, foreign exchange, money markets and interest rate derivatives in rupees maturing in September 17th will continue to be held on the same day, the central bank said.
However, settlement of all pending transactions due on September 18 will be postponed to the next business day – September 19, the RBI said.
The RBI said the settlement of the central government securities auction that took place on September 13 will be held on September 17 as stated earlier, adding that the settlement of the state government securities auction scheduled for September 17 will now be held on September 19 instead of September 18. As per RBI norms, the settlement cycle for all government securities auctions is T+1, which means funds and securities are settled on the next business day from the conclusion of the trade. The central government sold bonds worth Rs 22,000 crore through an auction on September 13. The standing deposit facility (SDF) and marginal standing facility (MSF) that were availed on September 13 and were scheduled to be reversed on September 17 will now be reversed on September 16, the RBI said. The SDF is the window that the RBI provides to banks to deploy surplus cash with the central bank. The MSF is the window provided by the RBI to banks to borrow at a rate higher than the repo rate when lenders face a shortfall of funds for mandatory reserve requirements.
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