Following the press conference held earlier on Friday, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced a cut to the reverse repo rate by 25 basis points (bps) to 3.75% even as it kept the repo rate unchanged at 4.40%.
The Indian central bank announced the launch of the second installment of TLTRO — TLTRO 2.0 — for easing credit to NBFCs.
Key takeaways
“Will conduct targeted repo operations for an amount of Rs50,000 crore to begin with in tranches of appropriate sizes.
The funds will have to be made in bonds, CP, NCD of NBFCs with 50% of it going to small and mid-sized NBFC within one month of availing the credit from RBI.
It will be classified as HTM or held to maturity. The notification on TLTRO 2.0 will be released today.”
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