The Reserve Bank of India (RBI) Friday said it will conduct on-tap targeted long-term repo operations (TLTRO) worth Rs 1 lakh crore to ensure comfortable liquidity condition in the banking system.
As a special case, the central bank also announced open market operations (OMOs) in state development loans (SDL) in the current financial year. “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 lakh crore at a floating rate linked to the policy repo rate,” RBI governor Shaktikanta Das said while announcing the monetary policy earlier in the day.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, he said.