RBI Governor announces SLTRO for small finance banks

RBI Governor Shaktikanta Das has recently made an announcement for a special long-term repo operation (SLTRO) for small finance banks, amid the second wave of COVID-19 cases in India. RBI will conduct the special operation of Rs. 10,000 crore at repo rate, Das further said.

“Small finance banks (SFBs) have been playing a prominent role by acting as a conduit for last mile supply of credit to individuals and small businesses,” Shaktikanta Das stated during an unscheduled address.

”To provide further support to small business units, micro and small industries, and other unorganised sector entities adversely affected during the current wave of the pandemic, it has been decided to conduct special three-year long-term repo operations of Rs 10,000 crore at repo rate for the SFBs, to be deployed for fresh lending of up to Rs 10 lakh per borrower,” Das further commeneted, adding that the facility will remain open till October 31, 2021.