Left out of on-tap TLTRO benefits, NBFCs approach RBI for inclusion

After being left out as a beneficiary of the on-tap targeted long-term repo operations (TLTRO), non-banking financial companies (NBFCs) have requested the Reserve Bank of India (RBI) to allow banks to use money drawn from this liquidity window for lending to them.

Along with its monetary policy review, the RBI had earlier this month announced an on-tap TLTRO scheme to ensure that credit reaches the deserving sectors of the economy. While sectors including agriculture, MSME and retail are covered, NBFCs have not been included as a beneficiary of the facility, Finance Industry Development Council (FIDC) said in a communication to