RBI to conduct fourth TLTRO for Rs 25,000 crore Today

To ensure availability of liquidity in the market, the Reserve Bank of India (RBI) will conduct the fourth targeted long-term repo operation (TLTRO) today for Rs 25,000 crore.

The central bank earlier on Wednesday announced the fourth targeted long-term repo operation (TLTRO) on April 17, 2020, for Rs 25,000 crore.

The RBI earlier on March 27, 2020, in its statement of development and regulatory policies announced TLTRO of up to three-year tenor and has so far done three tranches worth Rs 75,000 crore. The initial target is Rs 1 lakh crore. The third tranche was conducted for Rs 25,000 crore on April 7, 2020.

RBI in a statement has said, "The funds availed under this tranche of TLTRO would have to be deployed within 30 working days from the date of the operation. The funds availed under this tranche of TLTRO would have to be deployed within 30 working days from the date of the operation."

The maximum amount that a particular bank can invest in the securities issued by a particular entity or group of entities out of the allotment received by it under the TLTRO shall be capped at 10 per cent.