RBI to conduct SLTRO of Rs 10,000 crore for small finance banks on May 17
PTI, May 7, 2021, 5:17 PM IST
Mumbai: The Reserve Bank on Friday said it will conduct the first auction for special long-term repo operations (SLTRO) of Rs 10,000 crore for Small Finance Banks (SFBs) on May 17.
To provide further support to small business units, micro and small industries, and other unorganised sector entities adversely affected during the current wave of the pandemic, the RBI has decided to conduct SLTRO of Rs 10,000 crore at the repo rate for the SFBs, to be deployed for fresh lending of up to Rs 10 lakh per borrower.
The facility will be available till October 31, 2021.
In a statement, the Reserve Bank of India said it will conduct one auction for SLTRO each month.
“The first auction will be conducted on May 17, 2021, for Rs 10,000 crore. The unutilised portion of notified Rs 10,000 crore will be carried forward in each subsequent auction until fully utilised or till the last auction, whichever is earlier,” it said.
The SFBs participating in the scheme will have to ensure that the amount borrowed from the RBI should at all times be backed by lending to the specified segments till the maturity of the SLTRO.
Further, SFBs should endeavour to lend within 30 days from the date of availing the funds from the RBI.
In case of over-subscription of the notified amount, the allotment will be done on a pro-rata basis, the central bank said.
The minimum bid amount would be Rs one crore and multiples thereof
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Unilever is cutting 7,500 jobs and spinning off its ice cream business
PHF Leasing Limited announces hiring of over 200 people over the next two quarters
Patanjali advertising case: SC asks Ramdev, Balkrishna to appear before it
Markets surrender early gains to trade lower
US Fed interest rate decision key event to watch out for this week: Analysts
MUST WATCH
Latest Additions
Uddhav Thackeray dares BJP to disclose details of funds received through electoral bonds
Unilever is cutting 7,500 jobs and spinning off its ice cream business
Audi to drive in over 20 new models by 2025-end: CEO Gernot Dollner
Piracy sites in India pose greater risk of malware, surpassing adult sites, gambling ads: Study
Cong distributing cookers to lure voters in Bangalore Rural LS segment: JD(S) leader Kumaraswamy