On 17th Apr 2020, RBI announced the TLTRO 2.0 (Targeted Long-Term Repo Operations), wherein it has set apart Rs.50,000 as refinance support to NABARD, SIDBI and NHB and Rs.50000 to banks for on-lending to NBFCs and MFIs. I am surprised to note the poor offtake for the TLTRO 2.0 (Targeted Long-Term Repo Operations) offer of Rs.25,000 crore by RBI on 23rd April 2020 to the banks. The bids put in by banks were for Rs.12850 just, half of the offer. Banks should come forward to use the TLTRO funds without hesitation to fund the NBFCs and MFIs especially small and medium MFIs which have the last mile connectivity to help the people at the Bottom of the pyramid.
Apart from pushing the loans through NBFCs and MFIs, they should also come out with special COVID loans to directly lend to SHGs (Self Help Groups).