RBI’s second tranche of Rs 25,000 crore TLTRO on April 3

Mumbai: The Reserve Bank of India (RBI) on Monday said the second tranche of targeted long term repo operation (TLTRO) worth Rs 25,000 crore will be held on April 3, for a 3-year tenor.

The first tranche of TLTRO for Rs 25,000 crore was conducted on March 27.

On Friday, the central bank provided the much-needed shot in the arm to the non-SLR market in terms of liquidity support.


The central bank said it will conduct auctions of targeted term repos of up to three-year tenor of appropriate sizes for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate.

Liquidity availed under the scheme by banks has to be deployed in investment-grade corporate bonds, commercial papers and non-convertible debentures over and above the outstanding level of their investments in these bonds as on March 27, RBI said.

Market participants gave a thumbs up to the central bank’s TLTROs, and said this will help in reducing the yield on corporate bonds, which have been reeling under pressure amid low volumes.