RBI to conduct first repo operation on February 17 for Rs 25,000 crore

RBI, in its statement said, LTRO conducted under the scheme will be in addition to the existing LAF and MSF

The Reserve Bank of India (RBI) announced on Friday that it will conduct its first-ever long-term repo operations (LTROs) on February 17 of Rs 25,000 crore for three years, followed by a one-year LTROs of an equivalent amount on February 24.

In the monetary policy on Thursday, the RBI said it will conduct LTRO of up to Rs 1 trillion in various sizes. The idea is to give money to banks at repo rate for one and three years so that they don’t return the money the next day in the overnight window and lend it instead.

This measure, along with giving