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Banks can deploy on-tap TLTRO funds in agriculture, retail and MSMEs: RBI

Liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial paper and non-convertible debentures issued by the entities in specific sectors

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In order to entice banks to use this facility, the RBI has relaxed some rules for investment and loans granted from the on-tap TLTRO funds

Abhijit Lele Mumbai
The Reserve Bank of India on Wednesday said that banks can deploy money drawn from Rs 1 trillion on-tap targeted long term repo operations (on-tap TLTRO) in six sectors - agriculture, agri-infrastructure, secured retail, MSMEs, and drugs, pharmaceuticals and healthcare.

Liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial paper and non-convertible debentures issued by the entities in specific sectors. Liquidity availed under the scheme can also be used to extend loans and advances to these sectors, the RBI said in guidelines issued for the scheme.

On tap TLTROs are intended to enable banks to conduct

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First Published: Oct 21 2020 | 9:04 PM IST

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