Settlement Holiday 2024: No Transactions In Govt Securities, Forex, And Money Markets On Sept 18; Here's Why!

There is a change in public holidays in the coming days, one where, transactions and settlements in government securities, forex, and money markets will be closed. The reason is the shift of the Eid-e-Milad holiday from September 16 to September 18.

In its statement, RBI said that the Maharashtra government has declared September 18, 2024, as a public holiday under Section 25 of the Negotiable Instruments Act, of 1881. The public holiday on September 16, 2024, declared earlier has been cancelled.

Accordingly, RBI said, there will be no transactions and settlements in Government securities, foreign exchange, money markets and rupee interest rate derivatives on September 18, 2024. Settlement of all outstanding transactions due on September 18, 2024 (Wednesday) will get postponed to the next working day, i.e., September 19, 2024 (Thursday).

Further, it means, the Government securities market, foreign exchange market, money market and rupee interest rate derivatives market will now be operational on September 16, 2024 (Monday).

Notably, the settlement of secondary market transactions in Government securities, foreign exchange market, money market and rupee interest rate derivatives market which are due on September 17, 2024, will continue to be on the same day, i.e., September 17, 2024 (Tuesday).

RBI said settlement of the auction of Government of India Dated Securities conducted on September 13, 2024 (Friday) will take place on September 17, 2024 (Tuesday) as announced earlier. Settlement of the auction of State Government securities scheduled on September 17, 2024 (Tuesday) will now take place on September 19, 2024 (Thursday) instead of September 18, 2024 (Wednesday).

Also, RBI said that the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) under the Liquidity Adjustment Facility (LAF) which were availed on September 13, 2024 (Friday) and scheduled to reverse on September 17, 2024 (Tuesday) will now reverse on September 16, 2024 (Monday). Further, the SDF and MSF windows under the LAF will be available as usual on all days as per the extant guidelines.

The Maharashtra government rescheduled the Eid-e-Milad holiday, to avoid any potential clash with Anant Chaturdashi, the concluding day of the Ganesh Chaturthi festival, which falls on September 17.

Banks will be closed on September 18 as well in cities of Maharashtra.