Question
During 2021, RBI decided to conduct special three-year
long-term repo operations (SLTRO) of ________ crore at repo rate for the _________, to be deployed for fresh lending of up to ₹10 lakh per borrower. Fill in the blanks.Solution
Additional Information: All Small Finance Banks (SFBs) eligible under the Liquidity Adjustment Facility (LAF) can participate in the Scheme. There is no tenor restriction regarding lending by SFBs under the scheme. However, the SFBs will have to ensure that the amount borrowed from the RBI should at all times be backed by lending to the specified segments till maturity of the SLTRO. Furthermore, SFBs should endeavour to lend within a reasonable period, i.e., not later than 30 days from the date of availing the funds from RBI.
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