{"id":14211,"date":"2020-03-12T15:56:00","date_gmt":"2020-03-12T10:26:00","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=14211"},"modified":"2020-03-12T15:56:00","modified_gmt":"2020-03-12T10:26:00","slug":"long-term-repo-operationltro","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/long-term-repo-operationltro\/","title":{"rendered":"Long Term Repo Operation(LTRO)"},"content":{"rendered":"\n<p><strong>News:<\/strong>The Reserve Bank of India has received \u20b91.71 trillion in the third long-term repo operation(LTRO) conducted for an amount of Rs 25,000 crore.<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>About LTRO:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Long Term Repo Operation(LTRO) is a mechanism to facilitate the transmission of monetary policy actions and to inject liquidity into the banking system to boost credit growth.<\/li><li>Under this,the central bank provides one-year to three-year money to banks at the prevailing repo rate accepting government securities with matching or higher tenure as the collateral.<\/li><li>Usually,loans with higher maturity periods (here like 1 year and 3 year) will have higher interest rates compared to short term (repo) loans.<\/li><li>The operations are being conducted on Core Banking Solution (E-KUBER) platform.<\/li><\/ul>\n\n\n\n<p><strong>Significance of LTRO:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Enhance liquidity in the banking system by Rs 1 lakh crore.<\/li><li>It is expected to bring down short-term rates and also boost investment in corporate bonds.<\/li><li>Bring down the cost of funds for banks without effectively cutting deposit rates.<\/li><li>Encourage banks to push transmission of already announced interest rate cuts.<\/li><\/ul>\n\n\n\n<p><strong>Additional information:<\/strong><br><\/p>\n\n\n\n<p><strong>About Repo and Reverse Repo:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Repo Rate is the rate at which the RBI lends money to the banks for a short term.<\/li><li>Reverse Repo Rate is the short term borrowing rate at which RBI borrows money from banks.<\/li><\/ul>\n\n\n\n<p><strong>About E-Kuber:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>E-Kuber is the Core Banking Solution(CBS) of Reserve Bank of India introduced in 2012.<\/li><li>It provides a high degree of access to commercial banks and other institutions to their current account with the RBI.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:The Reserve Bank of India has received \u20b91.71 trillion in the third long-term repo operation(LTRO) conducted for an amount of Rs 25,000 crore. Facts: About LTRO: Long Term Repo Operation(LTRO) is a mechanism to facilitate the transmission of monetary policy actions and to inject liquidity into the banking system to boost credit growth. Under this,the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/long-term-repo-operationltro\/\">Continue reading <span class=\"screen-reader-text\">Long Term Repo Operation(LTRO)<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[4053],"class_list":["post-14211","post","type-post","status-publish","format-standard","hentry","category-economy","tag-long-term-repo-operation","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700779302,"cached_date":1703491039},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/14211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=14211"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/14211\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=14211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=14211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=14211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}