Covid-19 impact: Banks ignore RBI's TLTRO in order to avoid NBFC exposure

The latest auction was part of the TLTRO 2.0, through which RBI had planned to infuse up to Rs 50,000 crore, to begin with.

In a development that seems to substantiate the notion that banks are just not willing to lend to non-bank financial companies (NBFC), the RBI received bids of only about half of the Rs 25,000 crore it was offering under its revised Targeted Long-Term Repo Operation (TLTRO).

The scheme had been designed to enable half the money to flow to small NBFCs.

 
Banks put 14 bids worth Rs 12,850 crore for the three-year money offered. In a similar auction on April 9, some 18 bids were received for Rs 1.14 trillion against Rs 25,000 crore on offer. In the first version of