The special 3-year long-term repo operation (LTRO) of Rs 10,000 crore for small finance banks (SFBs) has been extended till December 31 and made available on-tap, Reserve Bank of India (RBI) governor Shaktikanta Das said on Friday.
A three-year SLTRO facility of Rs 10,000 crore at the repo rate was made available to SFBs in May 2021 to be deployed for fresh lending of up to Rs 10 lakh per borrower.
This facility was made available till October 31, 2021. Recognising the persisting uneven impact of the pandemic on small business units, micro and small industries, and other unorganised sector entities, it has been decided to extend this facility till December 31, 2021, RBI said on Friday.
This facility will now be available on tap to ensure extended support to these entities, RBI said.
" We have proposed to introduce a framework for retail digital payments in offline mode," Das said.
It has also been proposed to raise the transaction limit on IMPS transactions to Rs 5 lakh from the current cap of Rs 2 lakh.
Meanwhile, the central bank decided to keep the benchmark interest rate unchanged at 4 percent but maintained an accommodative stance even as the economy is showing signs of recovery after the second COVID wave. This is the eighth time in a row that the Monetary Policy Committee (MPC) headed by Das has maintained the status quo.
RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. MPC decided to keep the benchmark repurchase (repo) rate at 4 percent, Das said while announcing the bi-monthly monetary policy review.
(Edited by : Anshul)
First Published: IST