Indian stock markets shut for Eid celebrations
Indian stock exchanges are shut Thursday for Eid, with normal trading activities resuming Friday.
The Reserve Bank of India (RBI) on Friday said it will introduce on-tap targeted long-term repo operations (TLTRO) to borrow an amount of Rs 1 lakh crore to ensure comfortable liquidity conditions in the system.
Addressing the media after the Monetary Policy Committee’s (MPC) bi-monthly meeting, RBI Governor Shaktikanta Das said, “it has been decided to conduct on-tap TLTRO with tenors of up to three years for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate.”
The scheme will be available up to March 31, 2021, with flexibility with regard to enhancement of the amount and period after a review of the response to the scheme, the governor added.
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The central bank further said that liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial papers, and non-convertible debentures issued by entities in specific sectors over and above the outstanding level of their investments in such instruments as on September 30, 2020.
The liquidity availed under the scheme can also be used to extend bank loans and advances to these sectors.
In its bi-monthly monetary policy review, RBI kept the policy rate unchanged at 4 per cent and decided to continue with the accommodative stance.
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