Economy News

NFBC will be funded under on tap TLTRO Scheme

The Reserve Bank of India has announced to provide funds to the NFBCs from the banks which are under on tap TLTRO scheme.

This is to provide help for lending to some of the stressed sectors. The RBI has also announced on tap targeted long term repo operations scheme in October 2020.

RBI has further added to conduct on tap TLTRO for an amount up to Rs 1 lakh crore.

This is added at a floating rate. Moreover, this is imposed on tenors up to three years which are linked to the policy repo rate.

Further, this scheme will remain available till March 31, 2021.

Shaktikanta Das, Governor of Reserve Bank of India, further added this scheme will be available to provide relief for specified stressed sectors.

Hence, it will not be available for every sector and has its special availability only in some sectors which are of utmost importance.

Das, further stressed out that the non-banking finance companies are well recognized conduits. The NFBCs helps to outreach to various sectors of the economy.

Now, the funds will be provided under this TLTRO on Tap scheme for incremental lending.

Moreover, the Reserve Bank of India has not changed the repo rate from 4 percent. It is resumed on the same rate to contribute in the economic growth.

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