Banks do not want to cancel the funds acquired in eligible long-term repo transactions (TLTROs) in favor of the low-cost TLTRO that comes with some riders.
The Reserve Bank of India has postponed the submission date again as it demanded the cancellation of funds received from the central bank to invest in corporate bonds and commercial paper. The idea was that banks would cancel the money they had acquired at the repo rate at the time, giving priority to the current repo rate.
Between these two points the rate has dropped by more than 100 bases. However, the new TLTRO had to invest the on-tap funds available on the route into documents issued by agriculture, agricultural infrastructure, secure retail, micro, small and medium-sized enterprises (MSME), and pharmaceutical companies. .. , Pharmaceuticals and healthcare.
The Ontap TLTRO scheme will continue to operate until March 31st and all banks are eligible to participate.
Reserve Bank again postpones submission of TLTRO cancellation request
Source link Reserve Bank again postpones submission of TLTRO cancellation request