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What is Long Term Repo Operations?
Feb 07, 07:02

The Long Term Repo Operations (LTRO) is a monetary policy tool used by the Reserve Bank of India (RBI) to lend money to banks for a period ranging between one to three years. LTRO is performed at the current repo rate in exchange for government securities of equal or greater maturity. The prime reason RBI uses LTRO is to inject liquidity in the system at an interest rate par with the present term repo rate.

Importance of LTRO