RBI conducts one-year and three-year tenor LTRO to reduce banks’ lending rates

The Reserve Bank of India is conducting one-year and three-year tenor LTRO to help banks to reduce their lending rates. In the latest bi-monthly policy review, it announced term repurchase agreements (repos) of one-year and three-year tenors for Rs 1 trillion at the policy repo rate.

RBI has conducted three LTRO- Long-term repo operation on February 17, February 24 and March 1. The fourth operation is scheduled on March 9. In the third LTRO of three-year tenor, RBI has received 66 bids amounting to Rs 1.71 trillion.