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  • News From Press Mutual funds may not have enough quality papers to use RBI’s liquidity window

    Mutual funds may not have enough quality papers to use RBI’s liquidity window

    Credit risk schemes could be in a better position to meet redemption pressures.
    ET Apr 29, 2020

    The Reserve Bank of India’s decision to launch a Rs 50,000-crore liquidity window for mutual funds in the wake of the Franklin Templeton fiasco may not be enough to resolve the concerns engulfing the credit risk schemes, say industry officials.

    The central bank’s facility allows mutual funds to borrow from banks by keeping securities that are of investment grade as collateral.

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