Investors are elated that the Reserve Bank of India has come to their rescue with a Rs. 50,000 crore cheque to mutual funds so that they pay their investors without roiling the markets.
A promise of this nature calms the nerves of fund managers as well as investors as they don’t get bruised in their hurry to exit investments though it may not halt the exit itself. Banks are the pipeline through which the RBI wants to unclog the financial markets.
