The full form of STL in banking, referring to a specific type of loan, is Short Term Rupee Loan.
This scheme provides short-term rupee finance to Special Purpose Vehicles (SPVs) in the Government Sector. The purpose is to meet their working capital requirements, adhering to regulatory norms such as ERC (Expense Recognition Convention) and RBI (Reserve Bank of India) guidelines. These funds can be used for expenses like fuel, maintenance spares, operations and maintenance (O&M), and receivables.
