RBI changes dates of reversal for operations under LTRO, TLTRO due to public holiday

The RBI also said that penal charges such as cheque bounce/mandate failure charges, which are necessarily levied on a per-instance basis, may not be annualised.

The Reserve Bank of India (RBI) on March 3 extended by a day the dates of reversal of long-term repo operations (LTRO) and targeted long-term repo operations (TLTRO) due to public holidays.

The government of Maharashtra has declared March 7, 2023 (Holi) and April 7, 2023 (Good Friday) as public holidays under Section 25 of the Negotiable Instruments Act, 1881. The reversal of LTRO and TLTRO was planned on these two days.

The new date for the reversal of long-term repo operations is March 8 and that of targeted long-term repo operations April 8.

LTRO allows the central bank to lend money to banks for one to three years at the current repo rate in exchange for collateralised government assets with a similar or longer term.

In TLTRO, the liquidity provided to banks can be invested in specific sectors through debt instruments to push economic activity.

The central bank last conducted an LTRO on March 9, 2020 and a TLTRO on April 9, 2020.

On March 9, 2020, the central bank infused Rs 25,021 crore in the banking system and Rs 25,016 crore was infused on April 9, 2020 under TLTRO operations. Both operations were for a period of three years.