RBI to conduct on-tap TLTRO worth Rs 1 trillion to nudge credit growth

The TLTRO will be for tenors of up to three years and for a total amount of up to Rs 1 trillion at a floating rate linked to the policy repo rate for banks

The Reserve Bank of India (RBI) will provide banks on-tap funds up to Rs 1 trillion to give loans to sectors having multiplier effects on growth. The sectors, which could benefit from this move, include construction, real estate, and micro finance.  

RBI will provide these funds under on-tap targeted long-term repo operations (TLTRO) at floating rate linked to the policy rate for up to three years. At present, the repo rate is 4 per cent.

For the time being, the scheme will be available till March 31, 2021. However, the RBI has retained flexibility to enhance the amount and period after review