The Reserve Bank of India (RBI) has decided to kickstart the long-term repo operations (LTROs) on February 17 for a notified amount of Rs 25,000 with a tenor of three years. On Thursday, the RBI had announced LTRO - for up to a total amount of Rs 1,00,000 crore at the policy repo rate - to facilitate the transmission of monetary policy actions and flow of credit to the economy. The first LTRO will be on February 16, 2023, the RBI said on Friday. The RBI will conduct the second LTRO for an amount of Rs 25,000 crore with a tenor of one year on February 24. This will be reversed on February 23, 2021, it said. “The details of remaining LTROs will be announced in due course,” it said. According to the RBI, LTROs will be conducted on CBS (E-KUBER) platform. “The operations would be conducted at a fixed rate. Banks would be required to place their requests for the amount sought under LTRO during the window timing at the prevailing policy repo rate. Bids below or above policy rate will be rejected,” it said. “In case of over-subscription of the notified amount, the allotment will be done on pro-rata basis. The RBI will, however, reserve the right to inject marginally higher amount than the notified amount due to rounding effects. The minimum bid amount would be Rs one crore and multiples thereof. The allotment would be in multiples of Rs one crore. There will be no restriction on the maximum amount of bidding by individual bidders,” the RBI said. The reversal of these operations would take place at the ‘start of day’ on the day of maturity, it said. “The eligible collateral for LTROs and the applicable haircuts will remain the same as applicable for LAF. RBI eases repayment for stalled commercial realty projects The RBI Friday allowed banks to restructure commercial real estate advances and delay repayments for a period of up to two years. Earlier this week, the RBI announced lenders will be allowed to extend the repayment schedules for stressed commercial real estate projects for one year, without downgrading their asset classification. The date of commencement of commercial operations of projects, to which their repayment schedule is linked, may be shifted “within the period of one year from the original DCCO stipulated at the time of financial closure for commercial real estate projects,” it said.
