Thursday, April 15, 2021
News

RBI extends 'TLTRO on Tap' scheme by 6 months

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai | Wednesday, 2021 6:15:07 PM IST
The Reserve Bank on Wednesday decided to extend the 'TLTRO on Tap' liquidity scheme till September 30.

The scheme provides liquidity support for revival of activity in specific sectors that have both backward and forward linkages and having multiplier effects on growth. It was announced by RBI on October 9, 2020 and was earlier available up to March 31, 2021.

"With a view to increasing the focus of liquidity measures on revival of activity in specific sectors that have both backward and forward linkages and having multiplier effects on growth, the RBI had announced the TLTRO on Tap Scheme on October 9, 2020 which was available up to March 31, 2021.

On a review, it has now been decided to extend the TLTRO on Tap Scheme by a period of six months, i.e., till September 30, 2021," the monetary policy statement said.

In addition to the five sectors announced under the scheme on October 21 last year, 26 stressed sectors identified by the Kamath Committee were also brought within the ambit of sectors eligible under tap TLTRO on December 4, 2020 and bank lending to NBFCs on February 5, 2021.

"Liquidity availed by banks under the scheme is to be deployed in corporate bonds, commercial paper, and non-convertible debentures issued by entities in these sectors; it can also be used to extend bank loans and advances to these sectors," the statement said.

"Investments made by banks under this facility can be classified as held to maturity (HTM) even above the 25 per cent of total investment permitted to be included in the HTM portfolio. All exposures under this facility are exempted from reckoning under the large exposure framework (LEF)."

--IANS rv/sn/dpb

( 293 Words)

2021-04-07-12:14:25 (IANS)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Mall revenue recovery to be restricted t...
Office space demand subdues in Jan-Mar: ...
Huge losses from fresh Maha lockdown, sa...
Excitel expands fibre broadband services...
Emerging markets' quantitative easing pr...
Birlasoft launches Pega Center of Excell...
More...
 
INDIA WORLD ASIA
EC deploys 853 companies of central forc...
PM should heed RaGa's advice to control ...
Graft allegations: Anil Deshmukh grilled...
Karnataka scotches rumours about cancell...
Bus strike: Karnataka estimates revenue ...
Striking taxi drivers will kill tourism:...
More...    
 
 Top Stories
SRH restrict RCB to 149/8... 
No more lockdowns in Karnataka, ass... 
Bengal poll panel calls for all-par... 
Striking taxi drivers will kill tou... 
Mahika Sharma hosts Bihu 'Jalpan'... 
Office space demand subdues in Jan-... 
Mall revenue recovery to be restric... 
Chrissy Teigen calls little Luna he...