Targeted Long Term Repo Operations(TLTRO) – UPSC Prelims

Targeted Long Term Repo Operations(TLTRO):
  • It is a tool that lets banks borrow one to three-year funds from the RBI at the existing repo rate by providing government securities with similar or higher tenure as collateral.
  • It is called ‘Targeted’ LTRO as in this case, the RBI wants banks opting for funds under this option to be specifically invested in investment-grade corporate debt.