Major developmental and regulatory policy change by RBI on Liquidity

Major developmental and regulatory policies to directly address the stress in financial conditions caused by COVID-19, announced by RBI. 

 1. Targeted Long Term Repos Operations ( TLTROs) : 
To conduct auctions of targeted term repos of up to three years tenor of appropriate sizes for a total amount of up to Rs 1,00,000 crore at a floating rate linked to the policy repo rate. (Additional liquidity Rs 1,00,000 crores)

 2. Cash Reserve Ratio: 
To reduce the cash reserve ratio (CRR) of all banks by 100 basis points to 3.0 per cent of net demand and time liabilities (NDTL). (Additional liquidity Rs 1,37,000 crores)

 3.Marginal Standing Facility:

Marginal standing facility (MSF)  it has been decided to increase the limit of 2 per cent to 3 per cent of SLR . (Additional liquidity Rs 1,37,000 crores)

(These three measures relating to TLTRO, CRR and MSF will inject a total liquidity of Rs  3, 74,000 crore to the system .)

 4.  Repo rate and Reverse Repo Rates:   
Repo rates reduced to 4.40 % from 5.15% and Reverse repo rate reduced to 4% from 4.9%.