RBI's maiden long-term repo operation receives Rs 1.94-trillion bids

The allotment was done for all bids on a pro-rata basis

The Reserve Bank of India (RBI) received bids worth nearly eight times of Rs 25,000 crore on offer for its first long-term repo operation (LTRO). 

The RBI received 63 bids totaling Rs 1.94 trillion for the LTRO of three-year maturity. The RBI allotted Rs 25,035 crore to these banks on a pro-rata basis. Next week, there will be another LTRO of Rs 25,000 crore for one-year maturity.

The LTROs are done at a fixed rate — at the prevailing repo rate of 5.15 per cent now. The RBI for now plans to conduct LTROs of Rs 1 trillion through three-year