Money & Banking

RBI to inject ₹25,000 cr via TLTRO on April 17

Our Bureau Mumbai | Updated on April 15, 2020 Published on April 15, 2020

The Reserve Bank of India (RBI), on Wednesday, said it will conduct the fourth tranche of targeted long-term repo operation (TLTRO) of three-year tenor to inject ₹25,000 crore liquidity into the banking system on April 17.

Three tranches

The central bank said funds availed under this tranche of targeted long-term repo operation will have to be deployed within 30 working days from the date of the operation.

So far, TLTROs aggregating ₹75,000 crore have been conducted in three tranches

The maximum amount that a particular bank can invest in the securities issued by a particular entity or group of entities out of the allotment received by it under the TLTRO is capped at 10 per cent.

Liquidity availed under the LTRO by banks has to be deployed in investment-grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding level of their investments in these bonds as on March 27.

Banks are required to acquire up to 50 per cent of their incremental holdings of eligible instruments from primary market issuances, and the remaining 50 per cent from the secondary market, including mutual funds and non-banking finance companies.

Published on April 15, 2020

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