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The Reserve Bank of India (RBI) on Monday said it received bids worth ₹1.94 trillion for its three-year long-term repo operation (LTRO), or more than 7.8 times the funds on offer. The central bank received bids for ₹1.94 trillion, of which it accepted bids of ₹25,035 crore.
“The response to the LTRO has been highly encouraging," said RBI in a press release.
While on 6 February, the RBI’s monetary policy committee had maintained status quo for its bimonthly policy review keeping the repo rate unchanged at 5.15%, it had introduced unconventional liquidity and interest rate measures through the one-year and three-year LTROs, aggregating to ₹1 trillion to improve interest rate transmission and to ease liquidity in the system.
The RBI move is aimed at providing cheaper money to banks at the repo rate so that it can be used to boost credit growth. The central bank also withdrew the daily fixed rate repo and four 14-day term repos every fortnight.