RBI closes special window for Mutual Funds
Quotes

RBI closes special window for Mutual Funds

Last Updated: Tuesday, October 29, 2013, 14:45
 
 Comment 0
 
RBI closes special window for Mutual Funds
Mumbai: With the improvement in liquidity conditions, Reserve Bank on Tuesday decided to close the special window for commercial banks to meet the cash requirements of mutual funds (MFs) with immediate effect.

RBI, in July, had opened a special borrowing window of Rs 25,000 crore to help the crisis-ridden mutual funds tide over liquidity problems.

"With the normalisation of exceptional measures and taking into consideration the improvement in liquidity conditions since then, it has been decided to close this window with immediate effect," RBI Governor Raghuram Rajan said in the second quarter monetary policy review.

RBI, on July 17, had opened a special three-day repo auction under which banks would be encouraged to raise funds totalling Rs 25,000 crore at 10.25 percent for onlending to mutual funds.

The last time RBI had opened such a facility was in 2008, after the collapse of Lehman Brothers triggered a chain reaction and caused a global financial crisis that sent fixed income markets in a tizzy.

At the end of September quarter, Assets under management (AUM) of the mutual fund industry fell by 4.5 percent to Rs 8.08 lakh crore from Rs 8.46 lakh crore in the previous three-month period.




PTI

First Published: Tuesday, October 29, 2013, 14:43


Comments


comments powered by Disqus
India`s top ten billionaires
India`s top ten billionaires
Pradhan Mantri Jan Dhan Yojana - In Pics
Pradhan Mantri Jan Dhan Yojana - In Pics
Apple Smartwatch unveiled
Apple Smartwatch unveiled
Apple iPhone 6, iPhone 6 plus
Apple iPhone 6, iPhone 6 plus
Samsung Galaxy Tab 4 Nook
Samsung Galaxy Tab 4 Nook

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved