RBI to hold TLTRO of up to ₹1 lakh cr.

The Reserve Bank of India (RBI) will conduct an on-tap Targeted Long-Term Repo Operations (TLTRO) of up to three years tenor for a total amount of up to ₹1,00,000 crore at a floating rate linked to the policy repo rate.

The liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial paper and non-convertible debentures issued by the entities in specific sectors of agriculture, agri-infrastructure, secured retail, micro, small and medium enterprises (MSMEs) and drugs, pharmaceuticals and healthcare over and above the outstanding level of their investments in such instruments as on September 30, 2020, the RBI said.

Liquidity availed under the scheme can also be used to extend loans and advances to these sectors, it added.

“Investments made by banks under this facility will be classified as held-to-maturity (HTM) even in excess of 25% of total investment permitted to be included in the HTM portfolio. All exposures under this facility will also be exempted from reckoning under the large exposure framework (LEF),” the circular said.

The scheme will remain operational from October 22 till March 31, 2021.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jun 16, 2021 10:36:28 PM |

Next Story