Current Affairs - Banking - Discussion

The Reserve Bank of India (RBI) has announced the second set of measures to preserve financial stability and help put money in the hands of the needy and disadvantaged during the extended lockdown due to the COVID-19 crisis. RBI has approved to conduct a second set of targeted long-term repo operations (TLTRO 2.0) for an initial aggregate amount of Rs.50,000 crore. Reverse repo rate has been reduced by 25 basis points (bps) from 4.0% to 3.75% with immediate effect. Liquidity Coverage Ratio requirement for scheduled commercial banks has been brought down from 100% to 80% with immediate effect. It aims to improve the liquidity position for individual institutions.