RBI to conduct on-tap TLTRO worth ₹1 lakh crore

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RBI to conduct on-tap TLTRO worth ₹1 lakh crore
RBI to conduct on-tap TLTRO worth ₹1 lakh croreBCCL
The Reserve Bank of India (RBI) on Friday said it will conduct on-tap targeted long-term repo operations (TLTRO) for an amount of Rs 1 lakh crore to ensure comfortable liquidity conditions in the system. "It has been decided to conduct on-tap TLTRO with tenors of up to three years for a total amount of up to Rs 1,00,000 crore at a floating rate linked to the policy repo rate," RBI Governor Shaktikanta Das said while announcing the decisions taken by the central bank's Monetary Policy Committee (MPC).

Liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial papers, and non-convertible debentures issued by entities in specific sectors over and above the outstanding level of their investments in such instruments as on September 30, 2020, RBI said.

The scheme will be available up to March 31, 2021, with flexibility with regard to enhancement of the amount and period after a review of the response to the scheme.

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In its bi-monthly monetary policy review, RBI kept the policy rate unchanged at 4 per cent and decided to continue with the accommodative stance.

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