The Reserve Bank of India has announced that it will conduct on-tap TLTROs (Targeted Long-Term Repo Operations) of Rs 1 lakh crore for up to three years. This will be done at a floating rate linked to the repo rate and will be available until March 2021.

The TLTRO scheme will be reviewed on the basis of the response received. The liquidity availed from this scheme will be used to extend bank loans towards sectors that need growth.

Commenting on this move TT Srinivasaraghavan, MD of Sundaram Finance said, “For companies like us liquidity is comfortable, pricing is comfortable. I think this is more about liquidity for the smaller and midsized NBFCs. So, if on-tap TLTRO would go somewhere towards helping them, then that’s the big one,” he said.