Reserve Bank again postpones submission of TLTRO cancellation request

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.

Dear reader,

Business Standards has always worked hard to provide you with up-to-date information and commentary on developments that interest you and have a wide range of political and economic impacts on your country and the world. Your encouragement and constant feedback on how to improve our offerings only strengthened our determination and commitment to these ideals. Even during these difficult times resulting from Covid-19, we keep you up to date with credible news, authoritative views, and keen commentary on issues of relevant topics. I will continue to promise to keep it.
However, there is a request.

We need more support to continue to provide higher quality content as we fight the economic impact of the pandemic. Our subscription model has seen encouraging reactions from many who subscribe to our online content. More subscriptions to our online content can only help us reach our goal of providing you with better and more relevant content. We believe in free, fair and reliable journalism. Your support through more subscriptions will help us practice the journalism we are committed to.

Supporting high quality journalism, Subscribe to Business Standard..

Digital editor

Reserve Bank again postpones submission of TLTRO cancellation request

Source link Reserve Bank again postpones submission of TLTRO cancellation request

Related Articles

Back to top button