RBI announces additional LTRO for up to Rs.1,00,000-cr at the policy repo rate

Reserve Bank of India has recently announced that additional Long Term Repo Operations (LTROs) for up to a total of Rs.1,00,000 crore at the policy repo rate. The move comes at the backdrop of improving monetary transmission amid the COVID-19 crisis. RBI will also conduct the first tranche of the 3-year LTRO for Rs.25,000 crore on 18 March 2020 accordingly.

RBI will take the decision about additional tranches of the LTROs separately depending on the further review of evolving liquidity conditions. RBI added that the operational guidelines for LTROs as well as the clarifications issued in regard to that will apply for the current LTRO.