Reserve Bank of India governor Shaktikanta Das today announced TLTRO 2.0 of ₹50,000 crore to ensure that different segments of financial markets such as A non-banking financial companies (NBFCs) and microfinance institutions (MFIs) to get enough liquidity. The RBI is open to increasing this amount beyond ₹50,000 crore, the governor said.
At least 50% of amount availed by banks must go to mid and small sized NBFCs and MFIs, the RBI chief said.
Last month, the RBI had announced special targeted long term repos operations (TLTRO) operations to ease liquidity conditions. Under this, RBI will be conducting auctions of targeted term repos of up to three years tenor for a total of up to ₹1 lakh crore at a floating rate linked to the policy repo rate.
Liquidity availed under the scheme 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.
RBI said banks have to buy 50% of these incremental holdings from primary market issuances and the rest from the secondary market, including from mutual funds and non-banking finance companies.