Liquidity on Tap, but banks lukewarm

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RBI said this Rs 50,000 crore facility will now be valid until March 2022, out of which Rs 25,000 crore will be given to NABARD, Rs 10,000 crore to NHB and Rs 15,000 crore to SIDBI.

Synopsis

​Data on the RBI website shows that just Rs 5000 crore has been borrowed out of the Rs 1 lakh crore offered from the RBI since this facility was extended to be ‘on tap’ in October 2020. This borrowing happened on March 22, 2021. That on tap facility was first announced for five sectors namely, agriculture, agri-infrastructure, secured retail, MSMEs, drugs, pharmaceuticals and healthcare.

Reserve Bank of India’s (RBI) extension of the three-year targeted long term repo operations (TLTRO) to the end of September is unlikely to find any takers as banks are already flush with liquidity and can easily tap market sources for more resources.

Data on the RBI website show that just Rs 5,000 crore has been borrowed from the central bank since this facility was extended to be ‘on tap’ in October 2020. This borrowing happened on March 22,

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