MUMBAI: The Reserve Bank of India (RBI) on Monday said banks need to deploy funds raised under the targeted long-term repo operations (TLTRO) within 30 days of the auction or face penal interest.
In a clarification in the form of frequently asked questions (FAQs), the central bank said banks have already been given sufficient time to deploy funds availed under TLTRO scheme. “It has now been decided to allow up to 30 working days for deployment in specified securities for those banks who have availed funds under the first tranche of TLTRO conducted on 27 March," it said.
This is expected to deter banks from delaying their investments and help liquidity-starved companies from accessing funds. RBI said that if a bank fails to deploy funds