Senior Congress chief P Chidambaram praised the Reserve Financial institution of India for taking immediate motion to help crisis-hit mutual funds.
Congress chief P Chidambaram. (Picture: Reuters)
Senior Congress chief and former finance minister P Chidambaram on Monday lauded the Reserve Financial institution of India (RBI) for taking fast motion to help mutual funds after the latest Franklin Templeton episode.
“I welcome the RBI’s announcement of a Rs 50,00zero crore particular liquidity facility for Mutual Funds. I’m glad that RBI has taken observe of the considerations expressed two days in the past and requesting immediate motion,” P Chidambaram stated in a tweet moments after the announcement.
The RBI has introduced a particular liquidity facility price Rs 50,00zero crore to help mutual funds, that are dealing with an unprecedented disaster within the wake of financial difficulties on account of Covid-19 pandemic.
I welcome the RBI’s announcement of a Rs 50,00zero crore particular liquidity facility for Mutual Funds. I’m glad that RBI has taken observe of the considerations expressed two days in the past and requesting immediate motion.
— P. Chidambaram (@PChidambaram_IN) April 27, 2020
It might be famous that below the SLF-MF, RBI will conduct repo operations for a tenure of 90 days at a hard and fast repo price. Saying that the SLF-MF is on-tap and open-ended, RBI added that banks are allowed to submit their bids to avail funding on any day from Monday to Friday.
The scheme will likely be obtainable from in the present day and final until Could 11, 2020, or until the utilisation of the allotted quantity.
The transfer is aimed in the direction of serving to ease liquidity strain on the Mutual Fund trade, which has been below strain amid the Covid-19 lockdown.
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