<p style=”margin-bottom: 8px; text-align: center;”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><b><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”>Source – The Hindu</span></span></b></span></span></span></span></p>
<p style=”margin-bottom: 8px; text-align: center;”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><b><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”>GS Paper – 3</span></span></b></span></span></span></span></p>
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<p style=”margin-bottom:8px”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><b><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”>Context</span></span></b><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”> – </span></span><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”><span style=”color:#212121″>The non-banking financial companies (NBFCs) said the decision to keep the key repo rate — at which the RBI lends short term money to banks — unchanged was on expected lines and in consideration with keeping the inflation target while supporting growth</span></span></span></span></span></span></span></p>
<p style=”margin-bottom:8px”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><b><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”><span style=”color:#212121″>Highlights </span></span></span></b></span></span></span></span></p>
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<li style=”margin-left:8px”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”><span style=”color:#212121″>The Reserve Bank’s decision to enhance liquidity into the system through long-term repo operations will ease the borrowing cost for NBFCs and relaxation in loan to value guideline will help revive the economy, the industry</span></span></span></span></span></span></span></li>
<li style=”margin-left:8px”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”><span style=”color:#212121″> the six-member Monetary Policy Committee (MPC) voted unanimously to retain repo at 4 per cent while keeping its policy stance accommodative and suggested more measures going ahead to support the economy.</span></span></span></span></span></span></span></li>
<li style=”margin-bottom:8px; margin-left:8px”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”><span style=”color:#212121″>Under the targeted long-term repo operations (TLTROs) measures, the Reserve Bank of India will conduct on-tap TLTRO with tenors of up to three years for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate.</span></span></span></span></span></span></span></li>
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<p style=”margin-bottom:8px”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><b><span lang=”EN-US” style=”font-size:14.0pt”><span style=”line-height:107%”>What is Long term repo operation</span></span></b></span></span></span></span></p>
<p style=”margin-bottom:8px”><span style=”font-size:15pt”><span style=”line-height:107%”><span style=”font-family:Calibri,sans-serif”><span style=”color:#595959″><span lang=”EN-US” style=”font-size:14.0pt”><span style=”background:#fcfcfc”><span style=”line-height:107%”><span style=”font-family:"Arial",sans-serif”><span style=”color:#333333″><span style=”letter-spacing:.4pt”>The LTRO is a tool under which the central bank provides one-year to three-year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.</span></span></span></span></span></span></span></span></span></span></p>