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RBI announces special liquidity window for mutual funds

RBI announces special liquidity window for mutual funds

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by April 27, 2020 RBI

By Administrator_India

Capital Sands

The RBI is opening a special liquidity facility of upto 500 billion rupees ($6.6 billion) to help mutual funds tide over a severe liquidity strain imposed by the coronavirus pandemic and redemption pressures, it said on Monday.

Fund houses in India have struggled to allay investors’ fears of a flood of redemption requests after the prominent Franklin Templeton Mutual Fund said on Thursday it would wind up six credit funds for lack of liquidity.

“The stress is, however, confined to the high-risk debt mutual fund segment at this stage; the larger industry remains liquid,” the RBI said in its statement.

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