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This article is more than 8 month old.

Central bank extends TLTRO scheme to NBFCs

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"Funds from banks via TLTRO (Targeted Long Term Repo Operations) scheme will now be available to NBFCs," RBI Governor said in the press meet.

Central bank extends TLTRO scheme to NBFCs
In its Monetary Policy Meet on Friday, the Central bank announced the extension of Targeted Long Term Repo Operations (TLTRO) to India's Non-Banking Financial Companies (NBFCs).
"NBFCs are well-recognized conduits in reaching out to the last mile in various sectors, it is now proposed to provide funds from banks under the TLTRO on Tap scheme to NBFCs for incremental lending to the specified stressed sectors," RBI Governor Shaktikanta Das said during the monetary policy announcement.
In October 2020, Reserve Bank had announced TLTRO scheme worth Rs 1 trillion to provide liquidity support to various sectors and banks. At the time, NBFCs had written to the apex bank, requesting to include them as the beneficiaries in the liquidity support scheme. Heeding the request, RBI announced NBFC inclusion on Friday.
The liquidity availed by the banks under this scheme is deployed in corporate bonds, commercial papers, and non-convertible debentures. Sectors such as retail, micro, agri, infra, MSME, pharma, and healthcare are eligible for fund deployment under the scheme.
In the last monetary policy meet of FY21, the monetary policy committee voted unanimously to keep the repo rate and reverse repo rate unchanged at 4 percent and 3.35 percent, respectively.
Follow our live blog on the RBI monetary policy here
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