RBI announces Rs 50,000 cr special liquidity facility for mutual funds

Mangalore Today News Network

New Delhi, Apr 27, 2020: The Reserve Bank of India on Monday announced Rs. 50,000 crore Special Liquidity Facility for mutual funds, Hindustan Times reported.

 

The move comes after Franklin Templeton wounded up 6 funds last week.

The RBI in its press release stated that the coronavirus lockdown has “heightened volatility in capital markets” and has “imposed liquidity strains on mutual funds (MFs)”.

However, the RBI added that the stress at this stage is confined only to the high-risk debt mutual fund segment and “the larger industry remains liquid”.