RBI announces 2 LTROs early next month
The Reserve Bank on Tuesday announced two long-term repo operations (LTROs) for three-year tenors worth Rs 25,000 crore each to be conducted on March 2 and March 9.
The reversal date of LTRO on March 2, 2020 is March 1, 2023 while for LTRO to be conducted on March 9, 2020, it will be March 7, 2023, RBI said.
In the sixth bi-monthly policy, the RBI had announced term repurchase agreements (repos) of one-year and three-year tenors for a total amount of Rs 1 lakh crore at the policy repo rate, from the fortnight beginning on February 15.
LTROs are aimed at helping banks to reduce their lending rates, thereby quickening the monetary policy transmission.
The RBI has already conducted two LTROs for three-year and one-year tenor for Rs 25,000 crore each on February 17 and February 24, respectively.
In the February 17 LTRO for three years, it received bids of more than Rs 1.94 lakh crore.
In the second LTRO for one-year tenor conducted on February 24, RBI got 52 bids amounting to Rs 1.23 lakh