Monday, April 27, 2020
Financial stocks including Axis Bank, ICICI Bank, and IndusInd Bank surged up to 6 percent on the BSE today (27th April 2020) after RBI announced a Special Liquidity Facility (SLF) for Mutual Funds worth Rs 50,000 crore.
"Under the SLF-MF, the RBI shall conduct repo operations of 90 days tenor at the fixed repo rate. The SLF-MF is on-tap and open-ended, and banks can submit their bids to avail funding on any day from Monday to Friday," the RBI said in a statement.
Funds availed under the SLF-MF shall be used by banks exclusively for meeting the liquidity requirements of MFs by (1) extending loans, and (2) undertaking the outright purchase of and/or repos against the collateral of investment-grade corporate bonds, commercial papers (CPs), debentures and certificates of Deposit (CDs) held by MFs, it added.
