The Reserve Bank of India vide its notification dated 13th August 2021 has extended the On Tap Targeted Long-Term Repo Operations (TLTRO) till 31st December 2021.
The On Tap TLTRO was introduced in October 2020 to provide liquidity support to various economic sectors and banks. LTRO lets banks borrow one to three-year funds from the central bank at the repo rate, by providing government securities with similar or higher tenure as collateral.
Initially, the scheme was made available up to March 31, 2021, with flexibility with regard to enhancement of the amount and period after a review of the response to the scheme. Therefore through this notification, it has been extended till 31st December 2021.
