Reserve Bank of India said that it is soon going to conduct a special long term operation that is SLTRO, which is for small finance banks for each month which relates to the total of Rs. 10,000 crores. This is the first auction will be expressed on May 17 an amount of Rs. 10,000 crores and and the portion of amount which is not used and which will be auctioned on June 15.
This is an aid to support all small business entities either it is micro and small industries which were deeply affected during the present pandemic situation of second wave of corona virus. The targeted long term repo operation for the small finance banks, freshly lending an amount of Rs. 10 lakhs per borrowers. This facility will be available till October 31, 2021 to all small industries.
RBI also said that it will provide one auction for each month. Among that the first auction will be on May 17,2021 which is about Rs. 10,000 crore and the portion which is remained Or it will be carried to subsequent auction till it is utilized or till the last month which ever is earlier.
The minimum bid amount for this is 1 crore. The small finance banks which were participating in the utilization of this scheme will collect the amount, that is about to borrow from the RBI and it should be backed the amount by lending the amount till the maturity of the SLTRO.