18-05-2021 | 13:12 PM
Special Long Term Repo Operations (SLTRO)
• The Reserve Bank of India will conduct the first auction for special long-term repo operations (SLTRO) of Rs 10,000 crore for Small Finance Banks (SFBs). The SLTRO will be valid for three years.
• All the Small Finance Banks shall participate in the SLTRO. However, these banks should make sure that the amount borrowed from RBI should be lent only to specific segments such as unorganized sectors and small business units.
• RBI would conduct special three-year long-term repo operations (SLTRO) of Rs. 10,000 crore at repo rate for small finance banks (SFBs).
• Long Term Repo Operation is a tool under which the central bank provides one-year to three-year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.
