RBI eases norm for entities availing TLTRO funds to get guarantee
December 11, 2020
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The Reserve Bank of India (RBI), on Friday, said the credit outstanding stipulation for availing credit guarantee under ECLGS (Emergency Credit Line Guarantee Scheme) 2.0 will not apply to funds availed under On Tap TLTRO (Targeted Long-Term Repo Operation).
Currently, under ECLGS 2.0, only entities with credit outstanding between ₹50 crore and ₹500 crore are eligible for credit guarantee.
The RBI’s latest move will increase liquidity availability and credit guarantee to those entities with credit outstanding below ₹50 crore and above ₹500 crore.
Banks have been encouraged to synergise the two schemes – ECLGS 2.0 and On Tap TLTRO – by availing funds from the RBI under TLTRO and seek guarantee under ECLGS to provide credit support to stressed sectors (identified by the Kamath Committee).