To ease liquidity pressures on mutual funds, Reserve Bank of India today announced a special liquidity facility of ₹50,000 crore for mutual funds.
The RBI reiterated that it "remains vigilant and will take whatever steps are necessary to mitigate the economic impact of COVID-19 and preserve financial stability." The RBI's liquidity facility for mutual funds will be effective from today till May 11, 2020 or up to utilization of the allocated amount, whichever is earlier.
The RBI also assured that it will review the timeline and amount, depending upon market conditions. Mutual fund investors had received a jolt late last week when Franklin Templeton fund house halted withdrawals from six debt mutual fund mutual schemes with large exposures