Reserve Bank of India announced a special liquidity facility of ₹50000 crores for mutual funds
The Reserve Bank of India on Monday announced a special liquidity facility of ₹50000 crores for mutual funds. In the wake of the winding up of six debt funds by Franklin Templeton. “Heightened volatility in capital markets in reaction to coronavirus infection has imposed liquidity strains. On mutual funds, which have intensified in the wake of redemption. Pressures related to the closure of some debt mutual funds and potential contagious effects therefrom. The stress is, however, confined to the high-risk debt Mutual Funds segment at this stage; the larger industry remains liquid," Reserve Bank of India said in its press release.
