Reserve bank of in dia English news | Reserve bank of in dia, Latest News & Live Updates in English | English News (Latest English News) at Lokmattimes.com

Mumbai, April 17 In a bid to ease the liquidity strain caused due to COVID-19 outbreak and its subsequent economic fallout, the Reserve Bank of In dia on Friday decided to conduct the second round of targeted long-term repo operation (TLTRO) worth Rs 50,000 crore.In financial parlance, a TLTRO is a loan scheme for banks which come at the current repo rate from the RBI. This type of operation is generally conducted to relieve the banks from some of their debt repayment obligations towards bond holders. Thus, it boosts cash flows emanating from the banking sector.Announcing the slew of measures to contain the economic fallout of COVID-19, via online channels, RBI Governor Shaktikanta Das said: "... It has been decided to conduct targeted long-term repo operations (TLTRO 2.0) for a n aggregate amount of Rs 50,000 crore, to begin with, in tranches of appropriate sizes.""The funds availed by banks under TLTRO 2.0 should be invested in investment grade bonds, commercial paper, and non-convertible debentures of NBFCs, with at least 50 per cent of the total amount availed going to small and mid-sized NBFCs and MFIs."Besides, the Governor said that these investments have to be made within one month of the availment of liquidity from the RBI."As in the case of TLTRO auctions conducted hitherto, investments made by banks under this facility will be classified as held to maturity (HTM) even in excess of 25 per cent of total investment permitted to be included in the HTM portfolio," Das said."Exposures under this facility will also not be reckoned under the l arge exposure framework. Notification for the first TLTRO 2.0 auction will b e issued today."On Wednesday, the apex bank had said that so far, TLTROs for Rs 75,000 crore have been conducted in three tranches.The apex bank on Friday conducted the another TLTRO operation for Rs 25,000 crore.Earlier, the Reserve Bank Governor had said that a fresh TLTRO will be conducted via which Rs 1 lakh crore would be injected through multiple tranches.Market watchers have contended that such a move will have a durable impact on dealing with the economic fallout of the coronavirus.( With inputs from IANS )

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Marathi Language Controversy

Maharashtra News

Mumbai Local

Weather Update

Mumbai Rains

Ahmedabad Plane Crash

Reserve Bank Of In DiaFOLLOW

Reserve bank of in dia, Latest News

Business :Yes Bank shares surge over 7 pc after Q4 net profit

Shares of Yes Bank rose by 7.6 per cent on Thursday afternoon, a day after the private sector lender reported a net profit of Rs 2,629 crore in the January to March quarter against a loss of Rs 1,507 crore a year ago. ...

Business :Yes Bank posts surprise profit in Q4, deposits down 54% in last year

Yes Bank, which was put under a moratorium by the government, has registered a surprise profit of Rs 2,629 crore due to an extraordinary item of write off of T1 bonds.The bank has a loss of Rs 3,668 in the fourth quarter of financial year 2020 from o ...

National :ED files charge sheet against Rana Kapoor, family

The Enforcement Directorate (ED) has filed a charge sheet in connection with YES Bank scam against the bank's former Chief Operating Officer and managing director Rana Kapoor, his wife and daughters before a special PMLA court in Mumbai on Wednesday. ...

Politics :COVID-19 fallout: Siblings in Hyderabad develop low-cost face shields to be used by frontline warriers

As a goodwill gesture, two siblings from Hyderabad city are using up their savings to make face shields for the frontline warriors battling coronavirus. ...

Business :RBI to commence TLTRO 2.0 worth Rs 50k cr

In a bid to ease the liquidity strain caused due to COVID-19 outbreak and its subsequent economic fallout, the Reserve Bank of In dia on Friday decided to conduct the second round of targeted long-term repo operation (TLTRO) worth Rs 50,000 crore. ...