Mumbai: The Reserve Bank of India on Monday announced a special liquidity facility of ₹50,000 crore for mutual funds in the wake of the winding up of six debt funds by Franklin Templeton. “Heightened volatility in capital markets in reaction to COVID-19 has imposed liquidity strains on mutual funds (MFs), which have intensified in the wake of redemption pressures related to closure of some debt MFs and potential contagious effects therefrom.
The stress is, however, confined to the high-risk debt MF segment at this stage; the larger industry remains liquid," RBI said in its press release.
While majority of fund houses said that the debt schemes are fairly liquid at this point but in coming weeks, if the lockdown is not lifted then managing