Reserve Bank again postpones submission of TLTRO reversal requests

Banks are not willing to reverse the money taken under targeted long term repo operations (TLTRO) in favour of low cost TLTRO, which comes with some riders.

The Reserve Bank of India again postponed the date of submission for requesting the reversal of the money taken from the central bank to invest in corporate bonds and commercial papers. The idea was that the banks would reverse the money, taken at repo rate that time, in favour of repo rate now.

The rates have come down by more than 100 basis between these two points. The new TLTRO, however, came with a condition