Economics · Monetary Policy Instruments
Under the Targeted Long-Term Repo Operations (TLTRO) program of the RBI, what is the regulatory requirement for banks regarding the maintenance of securities acquired?
- 1Banks must maintain specified securities for the amount received under TLTRO exclusively in their daily trading account.
- 2Banks are permitted to include securities acquired under TLTRO under the HTM (Held to Maturity) category up to the specified limit.✓
- 3Banks must maintain specified securities for the amount received under TLTRO in their AFS (Available for Sale) book.
- 4Banks are not required to maintain any securities for the funds received under TLTRO.
Correct answer
Banks are permitted to include securities acquired under TLTRO under the HTM (Held to Maturity) category up to the specified limit.
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