RBI opens special funding line for MFs

Under RBI’s new facility, named Special Liquidity Facility for Mutual Funds (SLF-MF), banks are allowed to borrow from the central bank for a maximum of 90 days and then in turn lend the money to mutual funds against collateral in their portfolio. After 90 days, the fund houses will have to repay the bank and take back the collateral deposited. The banks in turn will return the money to RBI.

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