Q. What is the objective of Targeted Long Term Repo Operations?
Answer:
Increase liquidity in Markets
Notes: Targeted Long Term Repo Operation (TLTRO) is an RBI tool to enhance market liquidity, particularly for the corporate bond market. It allows banks to borrow 1 to 3-year funds at the repo rate, using government securities as collateral. This increases demand for government securities and lowers their yields. TLTRO provides banks with longer funding durations compared to other tools like the marginal standing facility or liquidity adjustment facility.