The Reserve Bank of India (RBI) on Friday proposed to provide funds to non-banking finance companies (NBFCs) from banks under on tap TLTRO scheme for lending to some stressed sectors. In October last year, the RBI had announced on tap targeted long term repo operations (TLTRO) scheme for banks. It had said to conduct on tap TLTRO with tenors of up to three years for a total amount of up to Rs one lakh crore at a floating rate linked to the policy repo rate. The scheme is available till March 31, 2021.
"NBFCs are well recognised conduits in reaching out to the last mile in various sectors, it is now proposed to provide funds from banks under the TLTRO on Tap scheme to NBFCs for incremental lending to the specified stressed sectors," RBI Governor Shaktikanta Das said during the monetary policy announcement.
The central bank kept the repo rate unchanged at 4 per cent and continued with the accommodative stance to support growth.