Current Context: The Reserve Bank to conduct TLTROs of up to three years tenor of appropriate sizes for a total amount of up to Rs 1,00,000 crores.
- So far, TLTROs for Rs 50,000 crores have been conducted in two tranches. It has now been decided to conduct another TLTRO operation for Rs 25,000 crores.
- The funds availed under this tranche of TLTRO would have to be deployed within 30 working days from the date of the operation.
- Objectives of LTRO: To assure banks about the availability of durable liquidity at a reasonable cost relative to prevailing market conditions.
- Further encourage banks to undertake maturity transformation smoothly and seamlessly so as to augment credit flows to productive sectors.
Static Part:
- The maturity period of LTRO: One-year and three-year tenors
- Total funds to be injected: Up to Rs 1,00,000 crores
Question:
Q.1 What is the maturity period of Long Term Repo Operations?
a. 2 years
b. 1 year
c. 4 years
d. 6 months
a. 2 years
b. 1 year
c. 4 years
d. 6 months
