How far will RBI’s liquidity window help the mutual fund industry?
Sunita Abraham spoke to four experts to understand what more the mutual fund industry may need to weather this crisis
The special liquidity facility for mutual funds (SLF-MF) announced by the Reserve Bank of India (RBI) on 27 April allows banks to borrow from the central bank at a fixed repo rate of 4.4% and use the funds to lend to mutual funds or buy investment-grade fixed income securities from them. Is this dedicated line of credit an adequate measure to meet the stress faced by the mutual fund industry in dealing with illiquidity and solvency issues in the debt markets, or is there more that can be done? Sunita Abraham spoke to four experts to understand what more the industry may need to weather this crisis