On Tap TLTRO scheme: RBI Policy: Stressed firms get longer access to dedicated liquidity window
“In view of the nascent and fragile economic recovery, it has now been decided to extend the TLTRO program on the fly for a period of three months, i.e. until December 31, 2021”, said the Reserve Bank of India (RBI) while announcing the bi-monthly policy on Friday.
Businesses took advantage of Rs 5,320 crore between March 22 and June 14, latest RBI data shows. It was typically a three-year currency for which the central bank charged an interest rate of 4%.
Distressed sectors identified by the KV Kamath committee were also included in the scope of the program on December 4, 2020, and subsequently bank loans to NBFCs were also included on February 5, 2021. On April 7, the program has been extended for a period of six months – until September 30 of this year.
With the aim of further focusing liquidity measures on stimulating activity in specific sectors that have both upstream and downstream links with multiplier effects on growth, the RBI announced the program on October 9. 2020, for five sectors.