The state government has declared January 22 as a public holiday under Section 25 of the Negotiable Instruments Act, 1881.
“Settlement of all outstanding transactions will accordingly get postponed to the next working day i.e., January 23, 2024 (Tuesday),” the RBI said.
The 3-day variable rate repo (VRR) auction conducted by the RBI on Friday, which is scheduled to reverse on January 22, will now be reversed on January 23. Meanwhile, a 3-day VRR auction that the RBI had earlier said would be conducted on January 22 stands cancelled and instead a 2-day VRR auction will be carried out on January 23.
“..on January 19, 2024 (Friday), an extra issue each of Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) with reversal on January 23, 2024 (Tuesday) is being made available,” the RBI said.
VRR auctions are used by the RBI to inject liquidity into the banking system while the MSF and the SDF are central bank windows for banks to borrow funds and park funds, respectively.
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