MUMBAI : The Reserve Bank of India (RBI) on Friday went all out to make ample liquidity available in the market and nudge banks to aid the productive sectors of the economy, announcing measures to inject ₹3.74 trillion.
The measures include targeted long-term repo operations (TLTRO) of up to ₹1 trillion, a 100-basis point (bps) cut in cash-reserve ratio (CRR) and easier borrowing requirements under the marginal standing facility (MSF) window.
RBI said the CRR cut and easier MSF rules will infuse ₹1.37 trillion each. The central bank also reduced the reverse repo rate by 90bps to 4%, making it less attractive for banks to simply park money with the RBI instead of lending.