RBI announces Rs 50,000 crore special liquidity facility for Mutual Fund
New Delhi/IBNS: The Reserve Bank of India on Monday announced it has opened a special liquidity facility worth Rs 50,000 crore for Mutual Funds.
The bank made the announcement when the country is combating COVID-19 outbreak.
"The RBI has stated that it remains vigilant and will take whatever steps are necessary to mitigate the economic impact of COVID-19 and preserve financial stability. With a view to easing liquidity pressures on MFs, it has been decided to open a special liquidity facility for mutual funds of ` 50, 000 crore," read the statement issued by the RBI.
" Under the SLF-MF, the RBI shall conduct repo operations of 90 days tenor at the fixed repo rate. The SLF-MF is on-tap and open-ended, and banks can submit their bids to avail funding on any day from Monday to Friday (excluding holidays)," it said.
"The scheme is available from today i.e., April 27, 2020 till May 11, 2020 or up to utilization of the allocated amount, whichever is earlier. The Reserve Bank will review the timeline and amount, depending upon market conditions," RBI said.