Description
RBI declares September 08, 2025 as public holiday under Negotiable Instruments Act, affecting government securities, forex and money market transactions.
Summary
The Reserve Bank of India has announced that September 08, 2025 has been declared a public holiday under Section 25 of the Negotiable Instruments Act, 1881 by the Government of Maharashtra. This replaces the previously declared holiday on September 05, 2025, which has been cancelled. All transactions and settlements in government securities, foreign exchange, money markets and rupee interest rate derivatives will be suspended on September 08, 2025.
Key Points
- September 08, 2025 declared as public holiday under Negotiable Instruments Act by Government of Maharashtra
- Previously declared holiday on September 05, 2025 has been cancelled
- No transactions and settlements in government securities, forex, money markets and rupee interest rate derivatives on September 08, 2025
- Markets will now be operational on September 05, 2025
- All outstanding settlements due on September 08 will be postponed to September 09, 2025
Regulatory Changes
- Change in public holiday calendar under Section 25 of the Negotiable Instruments Act, 1881
- Revised operational schedule for government securities market, foreign exchange market, money market and rupee interest rate derivatives market
- Modified Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) operations under Liquidity Adjustment Facility
Compliance Requirements
- Market participants must adjust their settlement schedules accordingly
- All SDF and MSF bids placed on September 04, 2025 will be reversed on September 05, 2025
- Settlement operations to resume on September 09, 2025 for transactions due on September 08
Important Dates
- September 05, 2025: Markets operational (previously declared holiday cancelled)
- September 08, 2025: New public holiday - no market operations
- September 09, 2025: Settlement of postponed transactions and Government of India Dated Securities auction conducted on September 04
Impact Assessment
Market Impact: High - affects multiple critical market segments including government securities, forex, and money markets. Operational Impact: Significant disruption to settlement schedules with one-day postponement of all outstanding transactions. Liquidity Impact: SDF and MSF windows adjusted according to revised holiday calendar, ensuring continued liquidity management operations.
Impact Justification
Major trading holiday change affecting multiple market segments with immediate settlement impact